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18 July 2016
Ringleader of Mortgage Loan Modification Scheme Sentenced to More Than 9 Years in Federal PrisonRead the Press Release
ARIA MALEKI, 33, of Santa Ana, Calif., was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 112 months of imprisonment, followed by three years of supervised release, for heading a mortgage loan modification scheme that defrauded more than 1,000 struggling homeowners across the United States.
“This defendant presided over a scheme that preyed on struggling homeowners in Connecticut and across the United States, falsely offering mortgage relief in exchange for thousands of dollars that the victims clearly could not afford to spend,” said Deirdre M. Daly, U.S. Attorney for the District of Connecticut. “The investigation revealed that the participants in this scheme specifically targeted homeowners who were behind on their mortgage payments, whose homes were ‘under water,’ or who had recently experienced a financial hardship, such as a lost job. This is an appropriate sentence for a defendant who profited handsomely from such heartless, criminal conduct. I thank our federal and state law enforcement partners in New England, New Jersey, California and Oklahoma for investigating this matter, shutting down this scam and bringing those responsible to justice.”
“This sentence should serve as a strong warning about the consequences awaiting those engaged in large-scale financial fraud,” said Terence Opiola, Special Agent in Charge of Homeland Security Investigations (HSI) in Newark. “The organization identified in this case was responsible for harming countless innocent victims. Working with its enforcement partners, HSI will continue to aggressively target thieves to ensure the perpetrators face the full weight of the law.”
“Aria Maleki took advantage of the national mortgage crisis,” said Shelly A. Binkowski, Postal Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service. “This sentencing clearly demonstrates that those who target hardworking homeowners in today’s challenging economy will be held accountable and prosecuted.”
“These arrests clearly demonstrate that those who target hardworking homeowners in today’s challenging economy will be held accountable. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation. The U.S. Postal Inspection Service will continue to investigate these crimes to protect consumers and our nation’s mail system from being used for illegal or dangerous purposes.”
“Aria Maleki stole millions by lying that his companies had ties to HAMP and could offer relief to homeowners struggling to avoid foreclosure,” said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program. “Every single victim was left worse off; many lost thousands of dollars and some, after promised modifications failed to materialize, lost their homes. Homeowners should be wary of any business charging up-front fees, advertising pre-approval at rates more favorable than industry norms, or offering money-back guarantees.”
“Mr. Maleki, along with his opportunistic criminal cohorts, facilitated a scheme to unjustly enrich themselves through the victimization of hardworking and vulnerable homeowners,” said Christina Scaringi, Special Agent in Charge, HUD OIG, Northeast Region. “The sentencing today is a testament to the unwavering dedication exhibited by law enforcement and the U.S. Attorney’s Office to ensure a swift dose of justice awaits anyone who engages in this kind of unforgivable deception to our homeowners, HUD’s Federal Housing Administration, and mortgage lending institutions. I applaud and commend the hard work and long hours put forth by our law enforcement partners.”
“Aria Maleki deceived and preyed upon innocent homeowners when they were already vulnerable and simply trying to hang on to their homes,” said Leslie DeMarco, Special Agent in Charge, Western Region, Federal Housing Finance Agency – Office of Inspector General. “These despicable schemes victimize homeowners and entire communities, and today Maleki was held accountable for his actions. We are proud to work with our law enforcement partners on this case, and will continue to work with them to bring to justice all individuals who attempt to defraud unwitting victims.”
“Mr. Maleki’s fate, based on his involvement in financial fraud, has been sealed by the court,” said Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation. “We in Connecticut are very thankful of the incredible work done on this case by law enforcement from across the country.”
According to court documents and statements made in court, MALEKI and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Acting as representatives of these entities, MALEKI and his co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
MALEKI presided over the entire structure of this scheme. As a result, more than 1,000 homeowners suffered losses totaling more than $3 million.
Judge Underhill stated that a restitution order will be entered at a later date.
MALEKI has forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
On January 21, 2016, a grand jury in New Haven returned an indictment charging MALEKI and six other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
On March 22, 2016, MALEKI pleaded guilty to one count of conspiracy to commit mail and wire fraud. The other six defendants also pleaded guilty and await sentencing.
This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Prince George’s County Felon Pleads Guilty to Federal Gun ChargeRead the Press Release
Greenbelt, Maryland – Quinton Darnell McLean, age 21, of Washington, D.C., pleaded guilty in U.S District Court in Greenbelt, to being a felon in possession of a firearm. The guilty plea was entered on Friday, July 15, 2016.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Criminals who are not deterred from carrying guns by the threat of prison time can be deterred by the reality of years spent in a federal prison far from home,” said U.S. Attorney Rod J. Rosenstein. “Police and prosecutors are working to identify armed criminals who deserve to be charged in federal court.”
According to his plea agreement, on February 12, 2016, McLean was traveling with two other men in a green Saturn on the Suitland Parkway. Officers with the Prince George’s Police Department Washington Area Vehicle Enforcement Team (WAVE) conducted a query of the temporary registration on the Saturn, which revealed that the tag was issued for a 1987 Mercedes Benz. Officers followed the vehicle, which pulled into a carwash on Branch Avenue in Temple Hills, Maryland.
The driver of the Saturn pulled the vehicle into the carwash bay and began washing the car while McLean and the other occupant stood outside the entrance to the carwash bay. One of the officers, whose unmarked car was next in line for the wash bay behind the green Saturn, saw McLean adjusting his waistband and clutching the right side of his waistband as he stood outside the carwash bay. The officer knew that McLean’s behavior was indicative of an armed person, and believed that McLean had a firearm in his waistband. The officer frisked McLean for weapons and recovered a loaded .45 caliber semi-automatic pistol that was tucked in the right front side of McLean’s waistband area. McLean was arrested. McLean has a previous felony conviction and is prohibited from possessing a firearm or ammunition.
While in state custody, before federal charges were filed, McLean made several calls from jail. During these conversations, which are recorded by the detention center, McLean made several statements, including, that he had made “a stupid a** mistake,” and that “I should have left the ‘dog’ in the glove box.” According to court documents, McLean also stated, “Maryland time is cheap as s**t.”
McLean and the government have agreed that if the Court accepts the plea agreement McLean will be sentenced to two years in prison. There is no parole in the federal criminal justice system. U.S. District Judge Paul W. Grimm has scheduled sentencing for September 26, 2016 at 9:30 a.m.
As part of the coordinated state effort to reduce violent crime, the Prince George’s County Police Department, ATF, FBI, DEA, HSI, U.S. Marshals Service, the Prince George’s County State’s Attorney’s Office, and the United States Attorney’s Office, review cases of defendants arrested for firearms violations, drug offenses and other violent crimes, and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew L. Paeffgen, who is prosecuting the case.
Philadelphia Man Sentenced to 25 Years for Heroin Trafficking and Firearms ViolationRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Juan Albertorio-Garcia, age 48, of Philadelphia, was sentenced to 25 years (300 months) by Senior U.S. District Court Judge Sylvia H. Rambo. This sentencing hearing followed Albertorio-Garcia’s conviction by a jury on November 4, 2015 for possession of a firearm in furtherance of drug trafficking and distributing heroin.
According to United States Attorney Peter Smith, the jury returned a verdict of guilty after hearing evidence that Albertorio-Garcia supplied other drug dealers with heroin for distribution in Harrisburg. The Pennsylvania State Police seized nearly 1,000 individual doses of heroin from Albertorio-Garcia’s operation in a seven day period, prior to arresting him and, following his arrest on March 18, 2014, seized additional quantities of heroin and a firearm from his home in Philadelphia.
This case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police and was prosecuted by Assistant U.S. Attorney Meredith A. Taylor.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Paola Couple Sentenced on Federal Tax ChargeRead the Press Release
TOPEKA, KAN. - The owners of a construction and remodeling business in Paola were sentenced Monday on a federal tax charge, Acting U.S. Attorney Tom Beall said today.
Dan Casey, 41, Paola, Kan., was sentenced to 15 months in federal prison. His wife, Nicole Lynn Casey, 39, Paola, Kan., was sentenced to three years on supervised release. They were ordered to pay $102,000 in restitution.
The Caseys pleaded guilty to one count of filing false tax returns. They admitted failing to report some of their income from Pro-Built, a construction and remodeling business they owned in Paola.
From 2008 through 2011 they failed to report more than $347,000 in income, resulting in tax due of more than $102,000. Dan Casey also admitted paying cash to contractors who worked on his barn following a fire. He failed to report the payments to the Internal Revenue Service.
Beall commended the Internal Revenue Service and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Oil Refiners to Reduce Air Pollution at Six Refineries under Settlement with EPA and Department of JusticeRead the Press Release
WASHINGTON – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a $425 million settlement with subsidiaries of Tesoro Corp., and Par Hawaii Refining that resolves alleged Clean Air Act violations and protects public health by reducing air pollution at six refineries. Under the settlement, the two companies will spend about $403 million to install and operate pollution control equipment, and Tesoro will spend about $12 million to fund environmental projects in local communities previously impacted by pollution. Tesoro will also pay a $10.45 million civil penalty.
“This settlement, achieved in partnership with states, will benefit the air quality in communities across the Western United States,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “It uses cutting edge technology to address global environmental issues like climate change by controlling flaring and provides important reductions of harmful air pollution in communities facing environmental and health challenges.”
“The advanced technologies Tesoro and Par are required to implement are the future for protecting people from toxic air emissions,” said Assistant Administrator Cynthia Giles for EPA’s Enforcement and Compliance Assurance. “This settlement puts new enforcement ideas to work that will dramatically cut pollution and protect communities.”
Today’s settlement, a consent decree lodged in U.S. District Court for the Western District of Texas, includes provisions that resolves ongoing Clean Air Act violations at refineries in Kenai, Alaska; Martinez, California; Kapolei, Hawaii; Mandan, North Dakota; Salt Lake City, Utah; and Anacortes, Washington. Of the $10.45 million civil penalty that Tesoro will pay, the United States will receive $8,050,000, and co-plaintiffs including the states of Alaska and Hawaii, and the Northwest Clean Air Agency will share $2.4 million.
Once the companies install the pollution controls required by the settlement, annual emissions reductions at the six refineries will total an estimated 773 tons of sulfur dioxide, 407 tons of nitrogen oxides, 1,140 tons of volatile organic compounds, 27 tons of hazardous air pollutants, 20 tons of hydrogen sulfide and the equivalent of 47,034 tons of carbon dioxide, which is a greenhouse gas. A large number of the emissions reductions will occur in areas with impaired air quality and protect populations at risk for respiratory illnesses. In particular, this settlement will reduce greenhouse gas emissions from flaring at the subject refineries by over 60 percent.
The settlement addresses a range of alleged leak detection and repair and flaring violations under the Clean Air Act at all six refineries as well as violations of the Act’s Prevention of Significant Deterioration, Non-Attainment New Source Review, New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants at certain refineries. The settlement also addresses various violations of state clean air laws, programs and permits.
Refineries process crude oil into products like gasoline, diesel fuel, kerosene, jet fuel, asphalt and liquefied petroleum gas and emit pollutants from a number of different sources. At the refineries subject to this settlement, fluid catalytic cracking units, sulfuric acid plants, heaters, boilers and sulfur recovery units, are substantial emitters of nitrogen oxides (NOx) and sulfur dioxide (SO2). Flaring results in emissions of SO2, greenhouse gases and toxic air pollutants, including volatile organic compounds (VOCs) and hazardous air pollutants. Fugitive emissions of VOCs result from leaking valves and pumps and can result in numerous health effects, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system, among other effects.
Leaks, flares, and excess emissions from refineries emit hazardous air pollutants, or air toxics, that are known or suspected to cause cancer, birth defects, and seriously impact the environment. SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Refineries also emit greenhouse gases that contribute to climate change, as well as fugitive VOCs.
The settlement incorporates the latest technological approaches to reducing flaring and making the flaring that does occur as efficient as possible. And in addition to installing pollution control equipment, the settlement requires Tesoro to use a series of state-of-the-art Next Generation Compliance tools to monitor pollution. Tesoro will use infrared gas-imaging cameras at four refineries to supplement the company’s enhanced leak detection and repair program. These cameras are able to locate fugitive VOC emissions that may not be otherwise detected and to address these fugitive emissions and in doing so protect refinery employees from them. Tesoro will also pay for third-party auditing of compliance with the enhanced leak detection and repair requirements at all six facilities. EPA’s Next Generation Compliance strategy works to advance the use of state-of-the-art technology to identify and reduce pollution.
Under the settlement, Tesoro will also spend about $12.2 million to fund three pollution mitigation projects. In addition to installing infrared cameras, Tesoro will install ultra-low NOx burners on a furnace at its Salt Lake City refinery. Tesoro estimates that the cost of this mitigation project is $10.8 million and is expected to result in significant quantifiable reductions in NOX emissions. Tesoro will also contribute $1 million to fund the replacement of old diesel school buses in Contra Costa County, California, with new compressed natural gas (CNG) school buses. Replacing existing school buses that run on diesel with vehicles that are powered by CNG decreases emissions of NOX, SO2, PM, greenhouse gases and other air pollutants.
This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes refineries, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all settlements under this initiative will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Tesoro Corp., is headquartered in San Antonio, Texas, and its subsidiaries, Tesoro Alaska Company LLC, Tesoro Logistics L.P. and Tesoro Refining & Marketing Company LLC operate five of the refineries covered by this settlement. Par Pacific Holdings, Inc., formerly known as Par Petroleum Corp. and a parent corporation of Par Hawaii Refining, purchased the Kapolei refinery from Tesoro in 2013.
There will be a 30 day public comment period on the consent decree lodged today. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website: www.justice.gov/enrd/consent-decrees.
For more information on the settlement or to read the consent decree, go to
https://www.epa.gov/enforcement/tesoro-and-par-clean-air-act-settlement
Oil Refiners to Reduce Air Pollution at Six Refineries Under Settlement with EPA and Department of JusticeRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a $425 million settlement with subsidiaries of Tesoro Corp., and Par Hawaii Refining that resolves alleged Clean Air Act violations and protects public health by reducing air pollution at six refineries. Under the settlement, the two companies will spend about $403 million to install and operate pollution control equipment, and Tesoro will spend about $12 million to fund environmental projects in local communities previously impacted by pollution. Tesoro will also pay a $10.45 million civil penalty.
“This settlement, achieved in partnership with states, will benefit the air quality in communities across the Western United States,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “It uses cutting edge technology to address global environmental issues like climate change by controlling flaring and provides important reductions of harmful air pollution in communities facing environmental and health challenges.”
“The advanced technologies Tesoro and Par are required to implement are the future for protecting people from toxic air emissions,” said Assistant Administrator Cynthia Giles for EPA’s Enforcement and Compliance Assurance. “This settlement puts new enforcement ideas to work that will dramatically cut pollution and protect communities.”
Today’s settlement, a consent decree lodged in U.S. District Court for the Western District of Texas, includes provisions that resolves ongoing Clean Air Act violations at refineries in Kenai, Alaska; Martinez, California; Kapolei, Hawaii; Mandan, North Dakota; Salt Lake City, Utah; and Anacortes, Washington. Of the $10.45 million civil penalty that Tesoro will pay, the United States will receive $8,050,000, and co-plaintiffs including the states of Alaska and Hawaii, and the Northwest Clean Air Agency will share $2.4 million.
Once the companies install the pollution controls required by the settlement, annual emissions reductions at the six refineries will total an estimated 773 tons of sulfur dioxide, 407 tons of nitrogen oxides, 1,140 tons of volatile organic compounds, 27 tons of hazardous air pollutants, 20 tons of hydrogen sulfide and the equivalent of 47,034 tons of carbon dioxide, which is a greenhouse gas. A large number of the emissions reductions will occur in areas with impaired air quality and protect populations at risk for respiratory illnesses. In particular, this settlement will reduce greenhouse gas emissions from flaring at the subject refineries by over 60 percent.
The settlement addresses a range of alleged leak detection and repair and flaring violations under the Clean Air Act at all six refineries as well as violations of the Act’s Prevention of Significant Deterioration, Non-Attainment New Source Review, New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants at certain refineries. The settlement also addresses various violations of state clean air laws, programs and permits.
Refineries process crude oil into products like gasoline, diesel fuel, kerosene, jet fuel, asphalt and liquefied petroleum gas and emit pollutants from a number of different sources. At the refineries subject to this settlement, fluid catalytic cracking units, sulfuric acid plants, heaters, boilers and sulfur recovery units, are substantial emitters of nitrogen oxides (NOx) and sulfur dioxide (SO2). Flaring results in emissions of SO2, greenhouse gases and toxic air pollutants, including volatile organic compounds (VOCs) and hazardous air pollutants. Fugitive emissions of VOCs result from leaking valves and pumps and can result in numerous health effects, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system, among other effects.
Leaks, flares, and excess emissions from refineries emit hazardous air pollutants, or air toxics, that are known or suspected to cause cancer, birth defects, and seriously impact the environment. SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Refineries also emit greenhouse gases that contribute to climate change, as well as fugitive VOCs.
The settlement incorporates the latest technological approaches to reducing flaring and making the flaring that does occur as efficient as possible. And in addition to installing pollution control equipment, the settlement requires Tesoro to use a series of state-of-the-art Next Generation Compliance tools to monitor pollution. Tesoro will use infrared gas-imaging cameras at four refineries to supplement the company’s enhanced leak detection and repair program. These cameras are able to locate fugitive VOC emissions that may not be otherwise detected and to address these fugitive emissions and in doing so protect refinery employees from them. Tesoro will also pay for third-party auditing of compliance with the enhanced leak detection and repair requirements at all six facilities. EPA’s Next Generation Compliance strategy works to advance the use of state-of-the-art technology to identify and reduce pollution
Under the settlement, Tesoro will also spend about $12.2 million to fund three pollution mitigation projects. In addition to installing infrared cameras, Tesoro will install ultra-low NOx burners on a furnace at its Salt Lake City refinery. Tesoro estimates that the cost of this mitigation project is $10.8 million and is expected to result in significant quantifiable reductions in NOX emissions. Tesoro will also contribute $1 million to fund the replacement of old diesel school buses in Contra Costa County, California, with new compressed natural gas (CNG) school buses. Replacing existing school buses that run on diesel with vehicles that are powered by CNG decreases emissions of NOX, SO2, PM, greenhouse gases and other air pollutants.
This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes refineries, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all settlements under this initiative will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Tesoro Corp., is headquartered in San Antonio, Texas, and its subsidiaries, Tesoro Alaska Company LLC, Tesoro Logistics L.P. and Tesoro Refining & Marketing Company LLC operate five of the refineries covered by this settlement. Par Pacific Holdings, Inc., formerly known as Par Petroleum Corp. and a parent corporation of Par Hawaii Refining, purchased the Kapolei refinery from Tesoro in 2013.
There will be a 30 day public comment period on the consent decree lodged today. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website: www.justice.gov/enrd/consent-decrees.
For more information on the settlement or to read the consent decree, go to
https://www.epa.gov/enforcement/tesoro-and-par-clean-air-act-settlement
Oil Refiners to Reduce Air Pollution at Six Refineries Under Settlement with EPA and Department of JusticeRead the Press Release
WASHINGTON – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a $425 million settlement with subsidiaries of Tesoro Corp., and Par Hawaii Refining that resolves alleged Clean Air Act violations and protects public health by reducing air pollution at six refineries. Under the settlement, the two companies will spend about $403 million to install and operate pollution control equipment, and Tesoro will spend about $12 million to fund environmental projects in local communities previously impacted by pollution. Tesoro will also pay a $10.45 million civil penalty.
“This settlement, achieved in partnership with states, will benefit the air quality in communities across the Western United States,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “It uses cutting edge technology to address global environmental issues like climate change by controlling flaring and provides important reductions of harmful air pollution in communities facing environmental and health challenges.”
“The advanced technologies Tesoro and Par are required to implement are the future for protecting people from toxic air emissions,” said Assistant Administrator Cynthia Giles for EPA’s Enforcement and Compliance Assurance. “This settlement puts new enforcement ideas to work that will dramatically cut pollution and protect communities.”
Today’s settlement, a consent decree lodged in U.S. District Court for the Western District of Texas, includes provisions that resolves ongoing Clean Air Act violations at refineries in Kenai, Alaska; Martinez, California; Kapolei, Hawaii; Mandan, North Dakota; Salt Lake City, Utah; and Anacortes, Washington. Of the $10.45 million civil penalty that Tesoro will pay, the United States will receive $8,050,000, and co-plaintiffs including the states of Alaska and Hawaii, and the Northwest Clean Air Agency will share $2.4 million.
Once the companies install the pollution controls required by the settlement, annual emissions reductions at the six refineries will total an estimated 773 tons of sulfur dioxide, 407 tons of nitrogen oxides, 1,140 tons of volatile organic compounds, 27 tons of hazardous air pollutants, 20 tons of hydrogen sulfide and the equivalent of 47,034 tons of carbon dioxide, which is a greenhouse gas. A large number of the emissions reductions will occur in areas with impaired air quality and protect populations at risk for respiratory illnesses. In particular, this settlement will reduce greenhouse gas emissions from flaring at the subject refineries by over 60 percent.
The settlement addresses a range of alleged leak detection and repair and flaring violations under the Clean Air Act at all six refineries as well as violations of the Act’s Prevention of Significant Deterioration, Non-Attainment New Source Review, New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants at certain refineries. The settlement also addresses various violations of state clean air laws, programs and permits.
Refineries process crude oil into products like gasoline, diesel fuel, kerosene, jet fuel, asphalt and liquefied petroleum gas and emit pollutants from a number of different sources. At the refineries subject to this settlement, fluid catalytic cracking units, sulfuric acid plants, heaters, boilers and sulfur recovery units, are substantial emitters of nitrogen oxides (NOx) and sulfur dioxide (SO2). Flaring results in emissions of SO2, greenhouse gases and toxic air pollutants, including volatile organic compounds (VOCs) and hazardous air pollutants. Fugitive emissions of VOCs result from leaking valves and pumps and can result in numerous health effects, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system, among other effects.
Leaks, flares, and excess emissions from refineries emit hazardous air pollutants, or air toxics, that are known or suspected to cause cancer, birth defects, and seriously impact the environment. SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Refineries also emit greenhouse gases that contribute to climate change, as well as fugitive VOCs.
The settlement incorporates the latest technological approaches to reducing flaring and making the flaring that does occur as efficient as possible. And in addition to installing pollution control equipment, the settlement requires Tesoro to use a series of state-of-the-art Next Generation Compliance tools to monitor pollution. Tesoro will use infrared gas-imaging cameras at four refineries to supplement the company’s enhanced leak detection and repair program. These cameras are able to locate fugitive VOC emissions that may not be otherwise detected and to address these fugitive emissions and in doing so protect refinery employees from them. Tesoro will also pay for third-party auditing of compliance with the enhanced leak detection and repair requirements at all six facilities. EPA’s Next Generation Compliance strategy works to advance the use of state-of-the-art technology to identify and reduce pollution.
Under the settlement, Tesoro will also spend about $12.2 million to fund three pollution mitigation projects. In addition to installing infrared cameras, Tesoro will install ultra-low NOx burners on a furnace at its Salt Lake City refinery. Tesoro estimates that the cost of this mitigation project is $10.8 million and is expected to result in significant quantifiable reductions in NOX emissions. Tesoro will also contribute $1 million to fund the replacement of old diesel school buses in Contra Costa County, California, with new compressed natural gas (CNG) school buses. Replacing existing school buses that run on diesel with vehicles that are powered by CNG decreases emissions of NOX, SO2, PM, greenhouse gases and other air pollutants.
This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes refineries, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all settlements under this initiative will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Tesoro Corp., is headquartered in San Antonio, Texas, and its subsidiaries, Tesoro Alaska Company LLC, Tesoro Logistics L.P. and Tesoro Refining & Marketing Company LLC operate five of the refineries covered by this settlement. Par Pacific Holdings, Inc., formerly known as Par Petroleum Corp. and a parent corporation of Par Hawaii Refining, purchased the Kapolei refinery from Tesoro in 2013.
There will be a 30 day public comment period on the consent decree lodged today. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website: www.justice.gov/enrd/consent-decrees.
For more information on the settlement or to read the consent decree, go to https://www.epa.gov/enforcement/tesoro-and-par-clean-air-act-settlement
Office Manager Pleads Guilty to Theft from Lawrence CompanyRead the Press Release
TOPEKA, KAN. - A former office manager for a Lawrence property management company pleaded guilty Monday to embezzlement, Acting U.S. Attorney Tom Beall said.
Candy A. Gunderson, 44, Lawrence, pleaded guilty to one count of interstate transportation of stolen funds. In her plea, Gunderson admitted the crime took place from 2007 to 2015 while she was office manager for Garber Enterprises in Lawrence. She used various means to steal money from the company including:
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Depositing into her personal account checks made payable to Garber Enterprises.
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Issuing forged Garber Enterprises checks.
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Using company funds to pay bills for work performed on rental properties she owned.
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Using the company VISA card for personal expenses.
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Depositing cash belonging to the company into her personal accounts.
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Forging checks on Garber’s account to pay for personal phone bill.
Sentencing is set for Nov. 7. She faces a penalty of up to 10 years in federal prison and a fine up to $250,000. At the sentencing hearing, the judge will determine the amount of the loss and the restitution.
Beall commended the Lawrence Police Department, the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
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Niagara Falls Man Pleads Guilty to Being A Felon in Possession of A FirearmRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Josue Ortiz, 34, of Niagara Falls, NY, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on December 23, 2015, the Niagara Falls Police Department was dispatched to a residence on Niagara Avenue. A resident living in the lower apartment told officers that she believed a resident living upstairs had a gun.
Officers went upstairs and made contact with the defendant through a closed door and asked Ortiz if he had a gun. The officers talked Ortiz into putting down the gun (a 12 gauge shotgun) and putting his hands up. Officers then placed the defendant in handcuffs and secured the gun.
The plea is the culmination of an investigation by the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for October 24, 2016 at 10:00 a.m. before Judge Vilardo.
Navajo Woman from Standing Rock, N.M., Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Chelsey A. Billy, 21, an enrolled member of the Navajo Nation who resides in Standing Rock, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Under the terms of her plea agreement, Billy will be sentenced to 30 months in federal prison followed by three years of supervised release.
Billy was arrested on Jan. 7, 2016, on a criminal complaint charging her with assaulting a Navajo man with a hammer on Dec. 22, 2015. The victim was seriously injured and suffered a fracture to his left orbital eye socket and various lacerations to his head and face.
Billy subsequently was indicted on Jan. 26, 2016, and was charged with assault with a dangerous weapon, a hammer, with intent to do bodily harm and assault resulting in serious bodily injury. The indictment alleged that Billy committed the crimes on the Navajo Indian Reservation in McKinley County, N.M., on Dec. 22, 2015.
During today’s proceedings, Billy pled guilty to assault resulting in serious bodily injury, and admitted to striking the victim in the head with a hammer several times, causing serious bodily injury to the victim. Billy remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Joseph Spindle.
Memphis Man Sentenced for Defrauding Multiple Financial Institutions of More Than $250,000Read the Press Release
Memphis, TN – A Memphis man has been sentenced to federal prison for defrauding multiple financial institutions of more than a quarter-million dollars. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Randall Meridith, 24, of Memphis, Tennessee, recruited individuals with existing bank accounts to allow him access to their accounts in exchange for cash payments. The criminal activity took place between January 2013 and May 2015.
In many instances, Meridith convinced the account holders that he was involved in a legitimate business operation, and that they could make money, if they allowed him to utilize their bank accounts for a limited time. After Meridith obtained the account holders’ bank cards and PIN numbers, he deposited (or had deposited on his behalf) more than $250,000 worth of stolen checks into numerous accounts at financial institutions in Shelby County and other areas. The financial institutions included USAA Federal Savings Bank, Bank of America, FedEx Employees Credit Association and Wright-Patt Credit Union. Shortly after the deposits were made, Meridith would withdraw the funds at ATMs, or made purchases using the bank cards before the financial institutions were alerted to the fraud.
One of Meridith’s many fraudulent transactions occurred on May 11, 2015, at an ATM on Nonconnah Boulevard. Meridith deposited a stolen check drawn on a USAA Federal Savings Bank account and payable to victim A.T. in the amount of $940 into the FedEx Credit Association account belonging to the victim. Meridith then quickly withdrew funds from the FedEx Credit account via ATMs, and used the bank card associated with the account to make purchases at Memphis Walmarts.
At Meridith’s sentencing, it was revealed that multiple victims went through a variety of financial challenges because of his scheme, including trouble making mortgage and car payments.
In December 2015, Meridith pleaded guilty before U.S. District Judge Sheryl H. Lipman to one count of bank fraud.
On Monday, July 18, 2016, Judge Lipman sentenced Meridith to 60 months in federal prison. Meridith was also ordered to pay more than $63,000 in restitution.
This case was investigated by the United States Postal Inspection Service and the Tennessee Highway Patrol Identity Crimes Unit.
Assistant U.S. Attorney Stephen Hall prosecuted this case on the government’s behalf.
Lackawanna Man Pleads Guilty to Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Ronald Anthony McCarter, Jr., 24, of Lackawanna, NY, pleaded guilty to bank robbery before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated on October 29, 2015, the Key Bank on Broadway Avenue in Lancaster, NY was robbed. An individual entered the bank, approached a teller and passed a note which demanded cash, no dye pack, and no sudden movements. Subsequent investigation identified McCarter as the individual based on bank surveillance photos.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen, and the Lancaster Police Department, under the direction of Chief Gerald Gill.
Sentencing is scheduled for October 20, 2016 before Judge Vilardo.
Guyanese National Sentenced to over 21 Years for Mortgage FraudRead the Press Release
Ravindranauth “Ravi” Roopnarine, 56, of Guyana, was sentenced by United States District Judge Jose E. Martinez on July 14, 2016 to 262 months in prison, following his conviction by a federal jury on charges stemming from his leadership and participation in an extensive mortgage fraud scheme. Following his term of imprisonment, Roopnarine will be placed on supervised release for five years. Roopnarine was also ordered to pay $9,041,133.46 in restitution to the defrauded lenders and banks.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
An indictment charged Roopnarine, Gergawattie “Kamla” Seecharan, Bhaardwaj “Deo” Seecharan and Linda Rovetto for their participation in a mortgage fraud scheme. The indictment charged Roopnarine with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; and wire fraud in violation of Title 18, United States Code, Section 1343. Roopnarine in mid-2015 waived extradition and returned from Trinidad and Tobago to the Southern District of Florida. On March 11, 2016, a jury convicted Roopnarine on all three counts.
According to the court documents and statements made in court, Roopnarine recruited and led his co-conspirators in a widespread mortgage fraud scheme involving more than 150 residential real estate properties in Indian River, Miami-Dade, and Orlando-Orange Counties. Roopnarine, along with Kamla Seecharan and her husband Deo Seecharan, conspired to solicit mainly Guyanese residents of Florida and other States to act as straw buyers on fraudulent mortgage loan applications. Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments. This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans. The co-conspirators then used the proceeds to purchase additional properties, fund pre-existing fraudulent mortgage loans, and pay kickbacks to the straw buyers. In addition, Kamla Seecharan and Rovetto unlawfully diverted more than $3.5 million in mortgage loans from real estate closing escrow accounts to Raviworld New Homes, Inc., a company managed by Roopnarine and Deo Seecharan.
Kamla Seecharan pled guilty to participating in a conspiracy involving more than $50 million dollars in fraudulent mortgage loan funds, in violation of Title 18, United States Code, Sections 1341, 1343 and 1349. Deo Seecharan and Rovetto each pled guilty to participating in a conspiracy to commit bank fraud involving $3.5 million dollars in diverted real estate escrow funds, in violation of Title 18, United States Code, Sections 1349 and 1344.
U.S. District Judge Jose E. Martinez sentenced Kamla Seecharan and Deo Seecharan, to 121 months and 60 months, respectively, in prison, to be followed by five years of supervised release. In addition, Kamla Seecharan and Deo Seecharan were ordered to pay restitution, in the amount of $2,040,343.14 and $9,041,133.46, respectively. U.S. District Judge Martinez sentenced Rovetto to 42 months in prison.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office for their work on this investigation, and the United States Marshals Service for their assistance with the extradition and return of Roopnarine to Florida from Trinidad & Tobago. The case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and James V. Hayes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Girls’ Softball Coach Sentenced to Prison for Distributing Child PornographyRead the Press Release
ATLANTA - Nicholas Mazza has been sentenced to seven years, three months in federal prison for distributing child pornography. The defendant is a former girls softball coach who had over 140,000 videos and pictures of sexual abuse of young girls when he was arrested. Mazza worked as a coach for girls’ softball teams in Cobb County, Georgia.
“It is incomprehensible that anyone could enjoy watching a child as young as three years old being sexually abused,” said U.S. Attorney John Horn. “Mazza had a massive collection of child pornography, and it is especially disturbing that this defendant worked around children. This sentence is a stark reminder of the importance of these investigations to the safety of our children.”
“Child pornography is one of the most heinous crimes HSI investigates due to the irrevocable harm it inflicts physically and emotionally upon innocent children,” said HSI Atlanta Special Agent in Charge Nick S. Annan. “This crime is an outrage in all cases; however, it was especially so in this instance given the massive quantity of illegal images recovered and the subject’s proximity to children. ICE Homeland Security Investigations is committed to investigating and seeking prosecution of child sex offenders as one of the agency’s highest priorities.”
According to U.S. Attorney Horn, the charges and other information presented in court: Mazza used a peer-to-peer file sharing program to search for and download child pornography files on the Internet. In October 2014, special agents with Homeland Security Investigations downloaded 14 videos of child pornography that Mazza kept in a folder that made the files available to other persons using the same peer-to-peer file sharing program. While downloading the files, the agents were able to capture the Internet Protocol address of the computer, which identifies the physical location of the computer. The agents obtained a federal search warrant for the house associated with that Internet Protocol address, and they carried it out in early November 2014. The agents took multiple computers, hard drives, and thumb drives.
A computer forensics analysis of all of those items showed that the defendant possessed more than 143,000 images and videos of child pornography involving almost exclusively young girls. The files included the sexual abuse of children as young as three years old, and many files depicted sadistic abuse of the children. Prior to his indictment in this case, Mazza worked as a coach for girls’ softball teams in Cobb County, Georgia.
Mazza, 67, of Powder Springs, Georgia, was sentenced to seven years, three months in prison to be followed by ten years of supervised release. Mazza was convicted on these charges on May 10, 2016, after he pleaded guilty. He was sentenced on July 15, 2016, by U.S. District Judge Leigh May.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gardena Gang Member and Longtime Pimp Sentenced to 40 Years in Federal Prison for Sex Trafficking of ChildrenRead the Press Release
LOS ANGELES – A Gardena man who was found guilty of sex trafficking seven girls, most of whom had been coerced or forced to work as prostitutes, was sentenced today to 40 years in federal prison.
Laron Darrell Carter, also known as “Birdd” and variations of that moniker, 39, received the sentence from United States District Judge Virginia A. Phillips, who also ordered the defendant to pay $631,248 in restitution to six of his victims.
Following a five-day trial in April, a jury convicted Carter of seven counts of sex trafficking of a minor by force, fraud or coercion, and seven counts of transporting a child to engage in prostitution.
The evidence at trial showed that Carter, a Crip gang member, trafficked girls as young as 13 and subjected some of them to beatings, which included victims being punched in the face and whipped with a belt.
Carter’s “conduct in this case spanned a decade as he prostituted the seven minor victims from 2003 to 2013” and transported them from California to Arizona, Texas, Georgia, Washington DC and Nevada, prosecutors wrote in a sentencing memorandum filed with the court.
“This defendant appeared to relish his role exploiting young children, but now he will pay a heavy price for the immeasurable damage he caused to his young victims,” said United States Attorney Eileen M. Decker. “Mr. Carter was able to seduce child victims into prostitution by tricking them into thinking he was their boyfriend, but he turned violent when the girls tried to leave or violated his ‘rules.’ No person, and particularly no child, should ever be subject to this type of exploitation and abuse.”
The case against Carter stemmed from the rescue of a 16-year-old girl in 2013. The victim told investigators from the Los Angeles County Sheriff's Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) that she had been recruited by Carter to travel from Minneapolis to Los Angeles. When she arrived in Southern California, Carter forced her into prostitution. As part of his activities, Carter took this victim to a hotel in El Segundo and advertised her services on backpage.com. The victim “ran away at one point, but she found herself lost with no money and returned,” according to court documents. “When she returned, defendant beat her and whipped her with a belt for leaving.”
After this victim was rescued, investigators located six other girls – one of whom was only 13 – who had been coerced or physically forced into prostitution by Carter between 2003 and 2010.
“Above all, this sentence assures no more girls will fall prey to this brazen and manipulative sexual predator for decades to come,” said Joseph Macias, special agent in charge of HSI Los Angeles. “But the outcome of this case should also serve as a sobering warning to those engaged in the sex trafficking of minors about the severe consequences for those who commit such crimes. HSI will continue to work tirelessly with its federal and local counterparts to identify these dangerous offenders and bring them to justice. Our efforts are vital to protecting young people from the fear and suffering these predators inflict on their victims.”
During the trial earlier this year, the jury saw Facebook postings in which Carter described himself as a “cross country pimp” who worked for “Pimpin International.” The jury also saw photos of tattoos with the “Birdd” moniker that victims were forced to get.
The case against Carter was prosecuted by Assistant United States Attorneys Jeff Mitchell and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
Fourth Family Member Sentenced in Benefits Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Belize man who was one of four family members convicted in a scheme to steal almost $300,000 in unemployment funds and benefits from multiple federal agencies, was sentenced today by U.S. District Judge James C. Mahan to 87 months in prison, three years of supervised release and ordered to pay approximately $297,000 in restitution, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Frederick Vernon Williams, 35, was convicted by a jury in January of 20 counts total, including conspiracy to commit mail fraud, aggravated identity theft, mail fraud, theft of government money, making a false statement in application for a passport, and making false citizenship claims. At sentencing, the judge found that he had been an organizer and leader in the scheme to defraud the agencies.
Williams’ sister, Jacqueline Louisa Gentle, 27, was convicted of nine counts total, including the above charges, misuse of a U.S. passport, and misuse of a social security number, and was sentenced on June 29 to 65 months in prison and ordered to pay $218,000 in restitution. Williams’ wife, Denise Allison Williams, 37, and his other sister, Carolyn Shelmadine Willis-Casey, 40, were each convicted of one count of mail fraud, and sentenced on June 30 to two years of probation and 30 months in prison, respectively. All four family members are citizens of Belize.
“The defendants falsely stated on government paperwork that they were U.S. citizens, and used false identities to steal federal benefits from multiple agencies, including the Departments of Labor, Agriculture, Education, Health and Human Services, and the Social Security Administration,” said U.S. Attorney Bogden. “We will continue to use federal laws to prosecute benefits thieves who steal from all Americans through greed and fraud.”
According to the court records and evidence submitted at trial, from about August 2010 to June 2012, defendants Frederick Williams and Jacqueline Gentle, citizens of Belize, conspired to register two fictitious companies, Luna Consulting and Centro America Export, with the State of Nevada, Department of Employment, Training, and Rehabilitation (DETR). After the companies were registered with DETR, the defendants conspired to submit fraudulent wage information for 16 fictitious employees, including themselves. After submitting the fraudulent wage information, the defendants submitted fraudulent unemployment compensation claims to DETR, and obtained unemployment compensation payments totaling approximately $218,000. The unemployment compensation payments were transferred to the defendants by means of Nevada debit cards mailed to the fictitious employees, which the defendants and co-defendants used to withdraw cash from ATM’s.
Frederick Williams and Gentle also made false statements in applications for U.S. passports by stating that their father was a U.S. citizen and by stating in other government paperwork that they were U.S. citizens, when they well knew that they were not citizens of the United States but were citizens of Belize.
Frederick Williams and Gentle also falsely stated that they were U.S. citizens in applications for other government benefit programs such as social security, federal student aid (Pell grants), food stamps, and Medicaid. Williams was able to fraudulently obtain approximately $33,184 in social security benefits, $10,900 in Pell grants, $33,814 in food stamp benefits, and $1,132 in Medicaid benefits.
Denise Williams fraudulently caused DETR to pay unemployment benefits in her name, and Carolyn Willis-Casey caused a notice for payment of unemployment benefits to be sent to her.
The case was prosecuted by Assistant U.S. Attorney Jiamin Chen and investigated by the U.S. Department of State Diplomatic Security Service, the Offices of the Inspector General for the U.S. Department of Labor, Social Security Administration, U.S. Department of Agriculture, U.S. Department of Education, and U.S. Department of Health and Human Services, and Homeland Security Investigations.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Former Tribal Casino Employee Sentenced for EmbezzlementRead the Press Release
WICHITA, KAN. – A former tribal casino employee was sentenced Monday to five years on federal probation for embezzlement, U.S. Attorney Tom Beall said today.
Donald M. Collins, 32, Wetmore, Kan., pleaded guilty to one count of embezzlement and theft from an Indian tribal organization. In his plea, he admitted the crime took place while he worked as a Players Club Representative for the Sac and Fox Casino, which is owned by the Sac and Fox Nation of Kansas and Nebraska.
Collins made counterfeit player cards and placed unearned free play on player cards belonging to his friends. Collins and others played the cards. The value of the counterfeit cards, along with winnings generated by the cards, caused a total loss to the casino of $30,766.
Beall commended the Kansas State Gaming Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Executive Director and Two Co-Defendants Indicted for Embezzling and Laundering Hundreds of Thousands of Dollars from CharityRead the Press Release
On Friday, July 15, 2016, a federal grand jury in Brooklyn returned a seven-count indictment charging Wafa Abboud, the former executive director of a charity that provides services to individuals with developmental disabilities, and Marcelle P. Bailey and Rami Misbah Taha, with embezzling and laundering hundreds of thousands of dollars from that charity for Abboud’s personal use. The defendants were also charged with bank fraud in connection with Abboud’s purchase of her residence in Merrick, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Eric Schneiderman, New York State Attorney General; and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
As is alleged in the federal indictment, between January 2011 and her termination in May 2016, Abboud served as the Executive Director of Human First, Inc. (Human First), a not-for-profit social services provider based in Nassau County, New York, that provided services to children and young adults with autism and other development disabilities throughout the metropolitan New York City area.
The government’s investigation revealed that, during the relevant period, Abboud directed Human First to pay approximately $900,000 in purported consulting fees to a company controlled by her co-defendant, Bailey. Abboud, in turn, used hundreds of thousands of dollars of these funds to pay her personal expenses, including more than $114,000 in personal credit card debt, which included charges for cosmetic surgery, family vacations, jewelry, meals, and spa treatments. She also used the funds to pay property taxes on her Merrick residence and to make large international wire transfers.
In December 2014, Abboud purchased the Merrick residence for $1.3 million, making a down payment of $340,000. In the months prior to that purchase, she authorized hundreds of thousands of dollars in payments from Human First to companies controlled by her co-defendant Taha, payments that were purportedly for renovation work being performed on Human First owned properties. Instead, those funds were re-routed to Abboud and used to fund the down payment on her residence. Similarly, between April and December 2015, Abboud directed Human First to pay more than $400,000 to Taha-controlled entities, the vast majority of which were then transferred to a construction company as a payment for renovations on Abboud’s residence.
Abboud, Bailey, and Taha are also charged with conspiracy to commit bank fraud in connection with false statements they made to secure the $1 million mortgage on Abboud’s residence.
United States Attorney Capers stated, “Embezzlement of public funds meant to aid individuals with developmental disabilities impacts some of the most vulnerable members of our community. With this indictment, we serve notice that those who engage in such crimes will be vigorously investigated and held to account.” Mr. Capers extended his grateful appreciation to the New York State Office of the Inspector General for its assistance.
“The crimes alleged by state and federal prosecutors are troubling, particularly because they involve funds intended to benefit the developmentally disabled community,” said Attorney General Schneiderman. “When individuals embezzle funds intended for a charitable purpose it undermines the mission of the charity and harms all donors and honest non-profit organizations.”
“As alleged, Wafa Abboud embezzled and laundered hundreds of thousands of dollars from a charity she was entrusted to run over a time period of five years. Abboud used co-conspirators to help her steal funds that were intended to help children with disabilities; instead the funds were used to finance a lavish lifestyle. Corruption is corruption wherever it exists. The FBI is committed to investigating and rooting it out, whether it happens in a public office or a nonprofit organization,” stated FBI Assistant Director-in-Charge Rodriguez.
The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the embezzlement charges, the defendants face a maximum sentence of 10 years’ imprisonment. If convicted of conspiracy to embezzle public funds, the defendants face a maximum sentence of five years’ imprisonment. If convicted of bank fraud or conspiracy to commit bank fraud, the defendants face a maximum sentence of 30 years. If convicted of conducting an unlawful monetary transaction over $10,000, the defendants Abboud and Taha face a maximum sentence of 10 years.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and Nathan Reilly, along with Special Assistant United States Attorney John Chiara (Special Counsel, Office of the New York State Attorney General) are in charge of the prosecution.
The Defendants:
WAFA ABBOUD
Age: 48
Merrick, New YorkMARCELLE P. BAILEY
Age: 49
Floral Park, New YorkRAMI MISBAH TAHA
Age: 39
Bronx, New YorkE.D.N.Y. Docket No. 16-CR-396
Former D.C. Government Official Pleads Guilty to Tax Charge, Under-Reported Income for Five Tax YearsRead the Press Release
WASHINGTON – Warren Graves, 63, a former District of Columbia government official, pled guilty today to a federal charge stemming from his failure to fully report income on federal tax returns, announced U.S. Attorney Channing D. Philips and Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Graves, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia to subscribing to a false tax return. The charge carries a statutory maximum of three years in prison and potential financial penalties. Under federal sentencing guidelines, Graves faces a likely range of 12 to 18 months of incarceration and a potential fine of up to $55,000. The plea agreement calls for him to pay the United States Treasury a total of $220,987 in restitution. The Honorable Randolph D. Moss scheduled sentencing for Oct. 25, 2016.
Graves was Chief of Staff for the District of Columbia’s Office of City Administrator from 2011 to 2015. Prior to that, from 2007 to 2011, he was a contractor who worked within the D.C. government.
According to the government’s evidence, Graves owned a company that provided consulting services to individuals and entities in Washington, D.C. The work generally consisted of arranging meetings between District of Columbia government officials and private businesses and individuals. In general, the arrangements with clients involved performing services in exchange for a future stream of payments totaling an agreed amount. Most of this work was done prior to 2009, but Graves continued to receive payments for prior services in the following years, including in years when he was a District of Columbia government employee.
In his plea, Graves admitted that he claimed false expenses on his tax returns for the tax years of 2009 to 2013 and that he omitted items of income in some of those years. This resulted in the under-reporting of $536,091 in income, leading to a loss of tax revenue to the U.S. government of $220,987.
In announcing the plea, U.S. Attorney Phillips and Special Agent in Charge Jankowski commended the work of those who investigated the case from of the Washington Field Office of the Internal Revenue Service-Criminal Investigation. They expressed appreciation for the assistance provided by the Department of Justice’s Tax Division. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney John P. Marston, who is prosecuting the case, and former Assistant U.S. Attorney Michael Atkinson, who assisted in the investigation.
Former Cardinals Official Sentenced to Prison for Astros Computer IntrusionsRead the Press Release
The former director of Baseball Development for the St. Louis Cardinals has been ordered to federal prison following his conviction of accessing the Houston Astros’ computers without authorization, announced U.S. Attorney Kenneth Magidson for the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI. Christopher Correa, 36, of St. Louis, Missouri, pleaded guilty Jan. 8, to five counts of unauthorized access of a protected computer.
Today, U.S. District Judge Lynn N. Hughes for the Southern District of Texas, who accepted the guilty plea, handed Correa a 46-month-term of imprisonment. In handing down the sentence, Judge Hughes noted the seriousness of the crime and how other baseball teams now must have tighter and more intrusive security. “You have made it harder for them to live their lives,” Hughes noted. Correa apologized and attempted to call his behavior reckless, but the judge corrected him. “No, you intentionally and knowingly did these acts.” Correa will also be required to serve a term of two years of supervised release following completion of the prison term and must pay $279,038.65 in restitution to the Astros.
“We are grateful that the court agreed to our sentencing recommendation as it was based upon our evaluation of the seriousness of the crime and the actions of the defendant,” said U.S. Attorney Magidson. “I am proud of the investigators and the federal prosecutor assigned the case who worked diligently to ferret out all the facts. Today, justice was done.”
From 2009 to July 2015, Correa was employed by the St. Louis Cardinals and became the director of Baseball Development in 2013. In this role, he provided analytical support to all areas of the Cardinals’ baseball operations. Correa is no longer employed by the Cardinals organization.
The Astros and the Cardinals, like many teams, measured and analyzed in-game activities to look for advantages that may not have been apparent to their competitors. To assist their efforts, the Astros operated a private online database called Ground Control to house a wide variety of confidential data, including scouting reports, statistics and contract information. The Astros also provided e-mail accounts to their employees. Ground Control and Astros e mails could be accessed online via password-protected accounts.
As part of his plea agreement, Correa admitted that from March 2013 through at least March 2014, he illicitly accessed the Ground Control and/or e-mail accounts of others in order to gain access to Astros proprietary information.
In one instance, Correa was able to obtain an Astros employee’s password because that employee has previously been employed by the Cardinals. When he left the Cardinals organization, the employee had to turn over his Cardinals-owned laptop to Correa – along with the laptop’s password. Having that information, Correa was able to access the now-Astros employee’s Ground Control and e-mail accounts using a variation of the password he used while with the Cardinals.
The plea agreement details a selection of instances in which Correa unlawfully accessed the Astros’ computers. For example, during 2013, he was able to access scout rankings of every player eligible for the draft. He also viewed, among other things, an Astros weekly digest page which described the performance and injuries of prospects who the Astros were considering and a regional scout’s estimates of prospects’ peak rise and the bonus he proposed be offered. He also viewed the team’s scouting crosscheck page, which listed prospects seen by higher level scouts. During the June 2013 amateur draft, he intruded into that account again and viewed information on players who had not yet been drafted as well as several players drafted by the Astros and other teams.
Correa later intruded into that account during the July 31, 2013, trade deadline and viewed notes of Astros’ trade discussions with other teams.
Another set of intrusions occurred in March 2014. The Astros reacted by implementing security precautions to include the actual Ground Control website address (URL) and required all users to change their passwords to more complex passwords. The team also reset all Ground Control passwords to a more complex default password and quickly e-mailed the new default password and the new URL to all Ground Control users.
Shortly thereafter, Correa illegally accessed the aforementioned person’s e mail account and found the e mails that contained Ground Control’s new URL and the newly-reset password for all users. A few minutes later, Correa used this information to access another person’s Ground Control account without authorization. There, he viewed a total of 118 webpages including lists ranking the players whom Astros scouts desired in the upcoming draft, summaries of scouting evaluations and summaries of college players identified by the Astros’ analytics department as top performers.
On two more occasions, he again illicitly accessed that account and viewed confidential information such as projects the analytics department was researching, notes of Astros’ trade discussions with other Major League Baseball teams and reports of players in the Astros’ system and their development.
The parties agreed that Correa masked his identity, his location and the type of device that he used, and that the total intended loss for all of the intrusions is approximately $1.7 million.
No other personnel associated with the Cardinals organization have been charged.
The FBI conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Former Cardinals Official Sentenced to Prison for Astros Computer IntrusionsRead the Press Release
HOUSTON – The former director of Baseball Development for the St. Louis Cardinals has been ordered to federal prison following his conviction of accessing the Houston Astros’ computers without authorization, announced U.S. Attorney Kenneth Magidson and Special Agent in Charge Perrye K. Turner of the FBI. Christopher Correa, 36, of St. Louis, pleaded guilty Jan. 8, 2016, to five counts of unauthorized access of a protected computer.
Today, U.S. District Judge Lynn N. Hughes, who accepted the guilty plea, handed Correa a 46-month-term of imprisonment. In handing down the sentence, Judge Hughes noted the seriousness of the crime and how other baseball teams now must have tighter and more intrusive security. “You have made it harder for them to live their lives,” Hughes noted. Correa apologized and attempted to call his behavior reckless, but the judge corrected him. “No, you intentionally and knowingly did these acts.” Correa will also be required to serve a term of two years of supervised release following completion of the prison term and must pay $279,038.65 in restitution to the Astros.
“We are grateful that the court agreed to our sentencing recommendation as it was based upon our evaluation of the seriousness of the crime and the actions of the defendant,” said Magidson. “I am proud of the investigators and the federal prosecutor assigned the case who worked diligently to ferret out all the facts. Today, justice was done.”
From 2009 to July 2015, Correa was employed by the St. Louis Cardinals and became the director of Baseball Development in 2013. In this role, he provided analytical support to all areas of the Cardinals’ baseball operations. Correa is no longer employed by the Cardinals organization.
The Astros and the Cardinals, like many teams, measured and analyzed in-game activities to look for advantages that may not have been apparent to their competitors. To assist their efforts, the Astros operated a private online database called Ground Control to house a wide variety of confidential data, including scouting reports, statistics and contract information. The Astros also provided e-mail accounts to their employees. Ground Control and Astros e‑mails could be accessed online via password-protected accounts.
As part of his plea agreement, Correa admitted that from March 2013 through at least March 2014, he illicitly accessed the Ground Control and/or e-mail accounts of others in order to gain access to Astros proprietary information.
In one instance, Correa was able to obtain an Astros employee’s password because that employee has previously been employed by the Cardinals. When he left the Cardinals organization, the employee had to turn over his Cardinals-owned laptop to Correa – along with the laptop’s password. Having that information, Correa was able to access the now-Astros employee’s Ground Control and e-mail accounts using a variation of the password he used while with the Cardinals.
The plea agreement details a selection of instances in which Correa unlawfully accessed the Astros’ computers. For example, during 2013, he was able to access scout rankings of every player eligible for the draft. He also viewed, among other things, an Astros weekly digest page which described the performance and injuries of prospects who the Astros were considering, and a regional scout’s estimates of prospects’ peak rise and the bonus he proposed be offered. He also viewed the team’s scouting crosscheck page, which listed prospects seen by higher level scouts. During the June 2013 amateur draft, he intruded into that account again and viewed information on players who had not yet been drafted as well as several players drafted by the Astros and other teams.
Correa later intruded into that account during the July 31, 2013, trade deadline and viewed notes of Astros’ trade discussions with other teams.
Another set of intrusions occurred in March 2014. The Astros reacted by implementing security precautions to include the actual Ground Control website address (URL) and required all users to change their passwords to more complex passwords. The team also reset all Ground Control passwords to a more complex default password and quickly e‑mailed the new default password and the new URL to all Ground Control users.
Shortly thereafter, Correa illegally accessed the aforementioned person’s e‑mail account and found the e‑mails that contained Ground Control’s new URL and the newly-reset password for all users. A few minutes later, Correa used this information to access another person’s Ground Control account without authorization. There, he viewed a total of 118 webpages including lists ranking the players whom Astros scouts desired in the upcoming draft, summaries of scouting evaluations and summaries of college players identified by the Astros’ analytics department as top performers.
On two more occasions, he again illicitly accessed that account and viewed confidential information such as projects the analytics department was researching, notes of Astros’ trade discussions with other Major League Baseball teams and reports of players in the Astros’ system and their development.
The parties agreed that Correa masked his identity, his location and the type of device that he used, and that the total intended loss for all of the intrusions is approximately $1.7 million.
No other personnel associated with the Cardinals organization have been charged.
The FBI conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Former Bosnian Army Prison Guard Pleads Guilty to Fraudulently Procuring U.S. CitizenshipRead the Press Release
A Jacksonville, Florida, man pleaded guilty today for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.
Slobo Maric, 56, pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida. Sentencing has not yet been scheduled.
According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden, of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers. Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation, including by referring to them with ethnic slurs and spitting on them. According to the plea agreement, Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict. The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners. According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship. Maric became a naturalized U.S. citizen on Oct. 31, 2002.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center.
Trial Attorneys Clayton O’Connor, Sasha Rutizer and Christina Giffin and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Dale Campion of the Middle District of Florida are prosecuting the case.
Former Bosnian Army Prison Guard Pleads Guilty to Fraudulently Procuring U.S. CitizenshipRead the Press Release
Jacksonville, FL – A Jacksonville, Florida, man pleaded guilty today for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.
Slobo Maric (56, Jacksonville) pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida. He faces a maximum penalty of ten years in federal prison. Additionally, he faces a mandatory revocation of his certificate of naturalization, and cancellation of his U.S. citizenship. Sentencing has not yet been scheduled.
According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers. Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation, including by referring to them with ethnic slurs and spitting on them. According to the plea agreement Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict. The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners. According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship. Maric became a naturalized U.S. citizen on Oct. 31, 2002.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center.
Trial Attorneys Clayton O’Connor, Sasha Rutizer and Christina Giffin and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Dale Campion of the Middle District of Florida are prosecuting the case.
Federal Jury Convicts Tonawanda Man on Multiple Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that a federal jury has convicted Elijah Iverson, 38, of Tonawanda, NY, of possession with intent to distribute 28 grams or more of cocaine, possession with intent to distribute marijuana, maintaining a drug involved premises, possession of a firearm in furtherance of drug trafficking crimes, and being a felon in possession of a firearm. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorneys Michael P. Felicetta and Joel L. Violanti, who handled the prosecution of the case, stated that on October 22, 2014, the defendant called the Tonawanda, NY Police Department and stated that an individual with a gun was attempting to get into his Kenmore Avenue apartment. When officers arrived, there was no sign of the alleged gunman.
Subsequently, officers went into Iverson’s apartment to speak with him about the incident. As the defendant was talking with officers, a police canine detected narcotics in the apartment. Iverson admitted to having a small amount of marijuana and powder cocaine which he surrendered to the officers but refused a full search of the apartment. As a result, officers obtained a search warrant and returned the next day.
During the full search, officers recovered an assault weapon, ammunition, a pound of marijuana and cash in a safe in Iverson’s bedroom closet. In addition, officers recovered more rounds of ammunition and approximately two ounces of crack cocaine in a bedroom used by the defendant’s young daughter.
Iverson has three prior felony convictions in state court which prevented him from legally possessing firearms.
The verdict is the result of an investigation by the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for October 25, 2016 at 10:00 a.m. before U.S. District Judge Lawrence J. Vilardo who presided over the trial.
Dodge City Woman Sentenced to 21+ Years for Producing Child PornRead the Press Release
WICHITA, KAN. - A Dodge City woman was sentenced Monday to 260 months in federal prison for making a video of herself engaged in a sex act with a child under five years old and uploading the video to the Internet, Acting U.S. Attorney Tom Beall said.
Ashley Marie Kelly, 25, Dodge City, Kan., pleaded guilty to one count of producing child pornography. In her plea, she admitted she used a smartphone to record the act and posted the video to her Google Drive account. Google discovered the photographs and sent reports to the National Center for Missing and Exploited Children
Beall commended the Ford County Sheriff’s Office, the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
District Man Sentenced to 16 Years in Prison on Robbery, Theft and Credit Fraud ChargesRead the Press Release
WASHINGTON – Marlon A. Wilson, 35, of Washington, D.C., has been sentenced to a 16-year prison term for a robbery and a theft that he committed at two restaurants on the same night in 2014, U.S. Attorney Channing D. Phillips announced today.
Wilson was found guilty by a jury in December 2014 of robbery, first-degree theft, second-degree theft, and credit fraud. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced on July 15, 2016, by the Honorable Milton C. Lee. Following his prison term, Wilson will be placed on three years of supervised release.
According to the government’s evidence, on Sunday, July 6, 2014, at approximately 9:30 p.m., Wilson entered a restaurant in the 500 block of Florida Avenue NW, ordered an iced tea, and then stole a wallet from a customer’s bag. The bag had been hanging over the back of her chair. Wilson left the tavern and then walked to another restaurant in the 600 block of T Street NW, a few blocks away. Once again, he ordered an iced tea. He then stole a wallet from a purse of a customer whose bag likewise was hanging on the back of her chair. Wilson then went to a nearby drug store and used one of the stolen credit cards to purchase two $480 gift cards.
The Metropolitan Police Department (MPD) arrested Wilson soon afterward in the area. He was caught with credit cards from both victims, as well as numerous gift cards. Wilson was subject to sentencing enhancements in this case because of his prior criminal history, which includes convictions for robbery, burglary, and theft and credit card fraud-related crimes.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Litigation Technology Specialist Leif Hickling; Paralegal Specialist Rochelle Mills; Victim/Witness Advocate Jennifer Clark; former Assistant U.S. Attorney Kathleen Connolly, and Assistant U.S. Attorney David Misler.
Defendants Sentenced to More Than a Decade in Prison for Violent Hostage TakingRead the Press Release
Assistant U. S. Attorneys Seth Askins (619) 546-6692 and Steve Miller (619) 546-7938
NEWS RELEASE SUMMARY – July 18, 2016
SAN DIEGO – Three defendants have been sentenced for their roles in an alien harboring and hostage taking conspiracy involving two Mexican nationals, one of whom was severely beaten when the conspirators’ ransom demands were not met.
In late July 2015, the two victims were smuggled into the United States from Mexico and stashed at a hotel in El Centro, presumably to await further transportation to their ultimate destination within the United States.
While waiting at the hotel, the victims were discovered by defendant Robert Covarrubias, who transported them by foot to the home of co-defendant Xochitil Victoria Otero, where they were initially locked in a shed before being taken into the house. Once inside Otero’s residence, Covarrubias was joined by co-defendant David “Smokz” Chavez, and the two of them contacted the victims’ family and demanded money for their release.
At one point, Chavez and Covarrubias threatened the male victim with a firearm, forcing him to beg his mother to send money to the defendants for fear of being killed. When it became apparent that their plan was destined to fail, Otero drove Chavez, Covarrubias and the two victims to a remote location in Imperial Valley where Chavez and Covarrubias severely beat the male victim with a crowbar before releasing them. The male victim sustained serious injuries to his head, face and hands as a result of the beating. Fortunately, the victims were able to make contact with a farmworker in an adjacent field, who helped them contact law enforcement.
Chavez and Covarrubias pleaded guilty to hostage taking, in violation of 18 U.S.C. § 1203(a), and Otero pleaded guilty to Alien Harboring, in violation of 8 U.S.C. § 1324(a)(1)(A)(iii) and (v)(II). On May 31, 2016, Chavez was sentenced to 168 months (14 years) in prison, while Otero was sentenced to 40 months for her lesser role in the offense. Today, Covarrubias was sentenced to 144 months (12 years) in prison for his role in the offense. The sentences were imposed by U.S. District Judge John A. Houston. A hearing to determine restitution for the victims is set for August 29, 2016.
The successful federal prosecution of this violent crime was a collaborative effort by Homeland Security Investigations Imperial Valley Border Enforcement Task Force and the U.S. Attorney’s Office. The case was prosecuted by Assistant U.S. Attorneys Seth Askins and Steve Miller.
DEFENDANTS Case Number 15cr2097-JAH
David Chavez, aka “Smokz” Age: 29 Calexico, CA
Robert Covarrubias Age: 20 El Centro, CA
Xochitil Victoria Otero Age: 24 El Centro, CA
SUMMARY OF CHARGES
Conspiracy to Take a Hostage and Hostage Taking – Title 18, U.S.C., Section 1203(a)
Maximum penalty: Life imprisonment and $250,000 fine
Alien Harboring – Title 8, U.S.C., Section 1324(a)(1)(A)(iii) and (v)(II)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations Imperial Valley Border Enforcement Task Force
Columbia Man Pleads Guilty to Conspiracy to Distribute Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Alexander Vladimir McMillin, also known as “Shasha,” 32, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to participating in a conspiracy to commit mail fraud between March 1, 2011, and Oct. 2, 2013.
McMillin was a partner in two companies, Dynamic Scents and its successor, Order-Refill, LLC. Two of his partners in those companies – Patrick Ross Hawkins, 34, and Molly Jane Charmichael, 38, both of Columbia – have also pleaded guilty. They are among 14 defendants who have pleaded guilty in this case.
By pleading guilty today, McMillin admitted that he sold wholesale orders of packaged synthetic drugs to customers throughout the state of Missouri. These packages of synthetic marijuana bore misleading labeling regarding the contents and nature of the product in order to avoid detection by law enforcement officers.
McMillin falsely and misleadingly referred to these synthetic drug products as “incense,” “herbal incense,” “potpourri,” “therapeutic potpourri,” that were labeled as “not intended for human consumption,” when, in fact, these products were synthetic drugs intended for consumption in order to obtain a physiological “high.” When sold at retail stores, these products were often located next to products and paraphernalia used for smoking the substances.
Law enforcement officers seized $82,149 from McMillin and seized $177,398 from the bank account of Order-Refill, all which must be forfeited to the government.
Under the terms of today’s plea agreement, the government and McMillin agree that a sentence of 63 to 78 months is appropriate. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Homeland Security Investigations, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol, the Kirksville, Mo., Police Department, the North Missouri Drug Task Force, the Schuyler County, Mo., Sheriff’s Department, the Edina, Mo., Police Department, the Linn County, Mo., Sheriff’s Department and the Brookfield, Mo., Police Department.
Cocaine Trafficker Sentenced to 10 Years in PrisonRead the Press Release
SAN JOSE - Misael Ledesma-Renteria, a/k/a “Miguel Angel Barreto-Mora,” a/k/a “Misael Renteria,” was sentenced today to 10 years in prison for conspiracy to possess with intent to distribute and conspiracy to distribute cocaine and methamphetamine, announced United States Attorney Brian Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin.
Renteria previously pleaded guilty on April 11, 2016 to one count of conspiracy to possess with intent to distribute and conspiracy to distribute cocaine and methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A)(viii). According to the plea agreement, Renteria admitted to conspiring with other individuals to distribute 5 kilograms or more of cocaine in the Northern District of California between July 5, 2013, and May 25, 2015. He admitted that, in furtherance of the conspiracy, he distributed cocaine and possessed with the intent to distribute cocaine on numerous occasions over his approximately 2 years of participation in the conspiracy.
Renteria, 32, a citizen of Mexico who was living in the San Jose area at the time of the offense, was indicted by a federal grand jury on October 8, 2015
The sentence of Renteria was handed down by The Honorable Edward J. Davila, U.S. District Court Judge, following a guilty plea to one count in violation of 21 U.S.C. §§ 846, 841(a)(1). Judge Davila also sentenced Renteria to a 5-year period of supervised release. The defendant has been in federal custody since September 24, 2015.
Chinhayi Cadet is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Theresa Benitez. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Cincinnati Man Sentenced for Illegally Importing Drugs into U.S.Read the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of an Ohio man for conspiring to illegally importing prescription drugs into the United States.
Michael Louis, 61, of Cincinnati, Ohio, previously pled guilty to one count of conspiring to illegally import prescription drugs into the United States and to illegally distribute tramadol. Today in the United States District Court for the Western District of Virginia in Abingdon, Louis was sentenced to imprisonment for a term of four months and was ordered to forfeit $2,500.
“We are proud to work with our partners at the Food and Drug Administration to ensure the quality and authenticity of the drugs coming into our country,” United States Attorney John P. Fishwick Jr. said today. “Consumers must be confident that they products they buy are safe and authentic.”
The investigation of the case was conducted by the U.S. Food and Drug Administration’s Office of Criminal Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Cazenovia Man Convicted of Fraud and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK – Following a seven-day trial, a jury returned a verdict today against James P. Griffin, 71, of Cazenovia, finding him guilty of all 23 counts of mail and wire fraud and money laundering, announced United States Attorney Richard S. Hartunian.
The evidence at trial showed Griffin is the Chief Executive Officer of several companies using variations of the names 54 Freedom and 5 Ledyard, all headquartered at 5 Ledyard Avenue, Cazenovia, New York. Testimony and documents established that Griffin solicited over $1.6 million in sales from 2009 to 2011 through a scheme involving a financial product called the 54 Freedom Charitable Gift Annuity. Griffin promised that the product was backed by a highly-rated, major insurance carrier and would provide guaranteed lifetime income to the purchaser. The trial evidence also showed that Griffin knew the Charitable Gift Annuities were not underwritten by insurance companies, and purchasers received no payments after 2013. Griffin was convicted of mail and wire fraud related to this scheme, and laundering money through various company bank accounts.
The jury also found Griffin guilty of mail fraud based on a scheme to entice investors to use retirement funds to invest in his companies by falsely promising to protect them from the tax consequences of withdrawing funds from qualified retirement accounts. Through this scheme, Griffin received at least $370,000.
Over the course of seven days, forty-one witnesses testified in the government’s case, and Griffin testified in his own defense.
Griffin will be sentenced in Syracuse on November 15, 2016, by Senior U.S. District Judge Frederick J. Scullin, Jr., who presided over the trial. Griffin faces a maximum term of imprisonment of twenty years on each of the mail and wire fraud counts and ten years on the money laundering counts. Each count carries a maximum fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorneys Edward R. Broton and Carina H. Schoenberger.
Caribou Man Pleads Guilty to Lying and Buying a Firearm for a FelonRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Brian Hitchcock, 29, of Caribou, Maine, pleaded guilty today in U.S. District Court to making a false statement during the purchase of a firearm.
Court records reveal that on May 23, 2014, the defendant went to Ben’s Trading Post, a federal firearms licensee and dealer of firearms located in Presque Isle, Maine, and falsely completed a federal firearms application form certifying that he was the actual buyer of a pistol, when, in fact, he was buying the pistol for a felon. Surveillance video showed the defendant purchasing the pistol when the felon was present at the Trading Post and the defendant later admitted to buying the pistol for the felon.
Hitchcock faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Caribou Police Department.
California Woman Sentenced in Marijuana and Money Laundering ConspiraciesRead the Press Release
SYRACUSE, NEW YORK – Simona Borissova, 31, of Danville, California, was sentenced on Friday by Chief U.S. District Judge Glenn T. Suddaby to a term of 24 months imprisonment, followed by 3 years of supervised release, and ordered to forfeit $273,665.00 in a money judgment, announced United States Attorney Richard S. Hartunian. The sentence followed her February 26, 2016 guilty plea to one count of conspiracy to distribute marijuana and one count of conspiracy to commit money laundering.
According to her written plea agreement, between January 2011 and August 2015, Simona Borissova, who lived in Las Vegas, caused marijuana to be driven from a marijuana farm in Northern California, owned by her parents, to various stash houses in Las Vegas, where others in the criminal conspiracy would take possession of the marijuana and ship it to Utica, New York and other cities around the United States. It was further part of the conspiracy that to pay for the marijuana shipped to individuals in Utica, New York, marijuana buyers and co-conspirators would deposit money into various bank accounts, some held in the names of third parties including Borissova. The cash was then withdrawn by Borissova from her accounts and used to purchase more marijuana, pay expenses, or otherwise spent at Borissova’s discretion.
As part of her guilty plea, Borissova admitted she knew the financial transactions involved proceeds from the marijuana distribution conspiracy and were conducted to conceal the true nature, source, and control of the proceeds. Borissova admitted in court that she conspired with others to engage in money laundering involving $273,665, which was the total amount of money orders purchased with proceeds from the sale of marijuana in and around Utica, New York which was used for payment for the marijuana shipped from California to Utica, New York.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the Bureau of Alcohol, Firearms, Tobacco and Explosives, the Drug Enforcement Administration, the Oneida County Sheriff’s Office, the New York State Police, the Oneida County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius and Special Assistant U.S. Attorney and Oneida County ADA Grant J. Garramone.
California Man Convicted of Conspiracy to Money Launder and Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on Monday, July 18, 2016, Sergio Valencia, Sr., of Moreno Valley, California, was convicted after a week-long jury trial of conspiracy to commit money laundering and conspiracy to distribute methamphetamine. Evidence presented at trial indicated that Valencia was involved with several other individuals who transported methamphetamine from California to Lincoln, Nebraska, and returned the proceeds of sales in Nebraska to California by making deposits to Wells Fargo bank accounts held in the names of Valencia’s wife, two children, another relative, and his landscaping business as well as accounts held in the names of relatives of one of Valencia’s co-conspirators. The approximate time-frame of the conspiracies was between April and September of 2011 for the money laundering and between January of 2010 and June of 2013 for the drug conspiracy. Valencia was acquitted of a third charge of conspiracy to structure financial transactions.
Sentencing is scheduled for October 20, 2016.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Buffalo Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Aramenta Lee, 63, of Buffalo, NY, who was convicted of theft of social security retirement benefits, was sentenced to five years probation with six months of home confinement by U.S. District Court Judge Frank P. Geraci. The defendant was also ordered to pay $235,160 in restitution to the Social Security Administration.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that Lee failed to notify the Social Security Administration of her father’s death in 2002. As a result, social security checks continued to be issued and deposited into a savings account in the name of the defendant’s father. As Power of Attorney, Lee had access to the account. Between July 13, 2002 and January 2, 2015, the defendant stole a total of $235,160 in social security benefits.
The sentencing is the result of an investigation by the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge John Grasso.
Albuquerque Felon Sentenced to Eleven and a Half Years for Robbery Spree Committed While on Supervised ReleaseRead the Press Release
ALBUQUERQUE – Vincent Steven Martinez, 38, of Albuquerque, N.M., was sentenced today in federal court to 139 months in prison followed by three years of supervised release for his conviction on robbing four businesses involved in interstate commerce while on supervised release from an armed bank robbery conviction. Martinez was sentenced to 121 months in prison for the robberies and an additional 18 months in prison for violating the terms of his supervised release.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division and Bernalillo County Sheriff Manuel Gonzales, III.
Martinez was arrested on Dec. 4, 2015, on an indictment charging him with being a felon in possession of a firearm and ammunition on Sept. 15, 2015, in Bernalillo County, N.M. At the time, Martinez was prohibited from possessing firearms or ammunition because he previously had been convicted on aggravated battery, armed bank robbery and bank robbery charges. The indictment subsequently was superseded on Jan. 14, 2016, to charge Martinez with violating the Hobbs Act on Sept. 12, 2015, by robbing a business engaged in interstate commerce.
On June 3, 2016, Martinez pled guilty to the Hobbs Act robbery charged in the superseding indictment as well as a felony information charging him with three additional Hobbs Act robberies. In entering the guilty plea, Martinez admitted the following criminal conduct:
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On Aug. 14, 2015, Martinez entered a gas station located at 1715 Moon Street NE in Albuquerque, threatened the cashier with a handgun, and stole cash and cigarettes.
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On Sept. 5, 2015, Martinez entered the hotel located at 4501 Alameda Blvd. in Albuquerque, brandished a knife at a hotel employee, and demanded money.Martinez robbed the employee of cash and a camera.
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On Sept. 10, 2015, Martinez entered a hotel located at 5241 San Antonio Dr. in Albuquerque, brandished a gun at a hotel employee, and robbed the employee of cash.
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On Sept. 12, 2015, Martinez entered the Family Dollar at 7900 Second St. NW in Albuquerque, showed the cashier a gun, and demanded money.When Martinez grabbed money from the cash register, he dropped his wallet, which contained his driver’s license.
Martinez also admitted violating the terms of his supervised release on a prior felony conviction by using a controlled substance and possessing a firearm. In admitting these violations, Martinez acknowledged that he was convicted on April 28, 2010, on an armed bank robbery charge and was sentenced to 71 months of imprisonment followed by three years of supervised release, which commenced on June 13, 2014. Martinez admitted that in Dec. 2014, he submitted a urinalysis sample that tested positive for opioids because of his heroin use. He also admitted failing to participate in an outpatient substance abuse program as required by the terms of his supervised release.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’s office. Assistant U.S. Attorney Shana B. Long prosecuted the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat and violent offenders, primarily based on their prior convictions, from counties with the highest violent crime rates under this initiative.
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17 July 2016
Statement by U.S. Attorney Regarding Today's Tragic IncidentRead the Press Release
BATON ROUGE, LA – In the wake of today’s tragic events, United States Attorney Walt Green stated: “Our hearts and prayers are with the families of the fallen officers and those officers who were wounded in this horrific incident. Today’s attack is truly despicable. We will devote whatever federal law enforcement resources are necessary to ensure that justice is served.”
Attorney General Loretta E. Lynch Statement on Baton Rouge, Louisiana, ShootingRead the Press Release
Attorney General Loretta E. Lynch released the following statement regarding the shooting in Baton Rouge, Louisiana:
“I have been briefed on the ongoing situation in Baton Rouge, Louisiana, and I will continue to monitor events throughout the day. Although information about this morning's incident is still coming in, we do know that at least three officers are feared dead and several others are wounded. Agents from the FBI and ATF are on the scene, and the Department of Justice will make available victim services and federal funding support, and will provide investigative assistance to the fullest extent possible.
“For the second time in two weeks, multiple law enforcement officers have been killed in the line of duty. There is no place in the United States for such appalling violence, and I condemn these acts in the strongest possible terms. I pledge the full support of the Department of Justice as the investigation unfolds. Our hearts and prayers are with the fallen and wounded officers, their families, and the entire Baton Rouge community in this extraordinarily difficult time.”
15 July 2016
Woodbridge Man Sentenced for Attempting to Travel to Syria to Join ISILRead the Press Release
ALEXANDRIA, Va. – Joseph Hassan Farrokh, 29, of Woodbridge, was sentenced today to 102 months in prison for attempting to provide material support and resources to a foreign terrorist organization, namely the Islamic State of Iraq and the Levant (ISIL). Farrokh was also sentenced to 10 years of supervised release.
“Farrokh’s state of mind and conduct in this case were egregious and go to the heart of the safety of our community and the nation,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This office will continue to pursue those that travel to fight against the United States and our allies, as well as those individuals that recruit others on behalf of ISIL in the homeland.”
“With this sentence, Joseph Hassan Farrokh will be held accountable for attempting to travel overseas to join ISIL and to provide material support to the designated terrorist organization,” said John Carlin, Assistant Attorney General for National Security. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”
“Joseph Farrokh admitted to attempting to travel to Syria to join and fight with ISIL in support of its oppressive, violent, and criminal agenda,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “Thanks to the relentless work of agents, analysts, and prosecutors, together with the essential contributions of our partners in the Joint Terrorism Task Force, we were able to disrupt those plans and bring him to justice. The FBI's highest priority remains preventing terrorist attacks and combating terrorism here in the U.S. and around world.”
According to the statement of facts filed with the plea agreement, Farrokh conspired with Mahmoud Amin Elhassan, 25, of Woodbridge, to travel from the United States to Syria in order to fight with ISIL. As part of their plan, Farrokh would travel first, followed by Elhassan at a later date. Farrokh and Elhassan spoke in detail about their potential travel, including discussing the different routes each would take to travel to Syria. Farrokh also provided $600 to Elhassan to aid in Elhassan’s future travel to Syria. Both men spoke openly with each other about supporting ISIL and supporting violent jihad, with Farrokh saying on October 2, 2015, that he had no patience and wanted to go right away and “chop their heads.”
According to the statement of facts, in an effort to conceal their plans to support ISIL, Farrokh and Elhassan communicated in a manner in which they thought could not be detected by law enforcement, such as using apps they believed were safe from law enforcement detection. In the summer of 2015, Farrokh and Elhassan talked more seriously about going to join the Islamic State. When Farrokh and Elhassan discussed ways to reach the Islamic State, they concluded that they needed someone to help them do so. Elhassan was very active online, and contacted like-minded people all over the world. The men pursued two separate plans to travel to Syria to join ISIL, but neither plan worked out.
According to the statement of facts, Farrokh and Elhassan conspired with other persons they believed would help facilitate their travel to Syria. Over the course of many meetings, the men discussed in detail their travel plans and efforts to avoid law enforcement detection, including having Farrokh shave his beard and fly out of Richmond International Airport, as they believed there would be less security. Farrokh and Elhassan agreed that Farrokh should tell his family that he intended to travel to Saudi Arabia to study.
According to the statement of facts, on January 15, Elhassan picked up Farrokh at his home in Woodbridge and drove him to Richmond to a location approximately one mile from the airport. Farrokh then took another cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Gordon D. Kromberg and Dennis M. Fitzpatrick, along with Trial Attorney D. Andrew Sigler of the Justice Department’s National Security Division’s Counterterrorism Section prosecuted the case. The FBI’s Joint Terrorism Task Force investigated the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-20.
Wichita Man Sentenced in Massage Parlor Prostitution CaseRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Friday to 18 months in federal prison in a massage parlor prostitution case, Acting U.S. Attorney Tom Beall said.
In April, a federal jury found defendant Kay Tee, 51, Wichita, Kan., guilty on one count of attempting to entice a person to cross state lines to engage in prostitution, one count of using a telephone in furtherance of prostitution and one count of money laundering.
During trial, prosecutors presented evidence that Tee was arrested May 28, 2015, at the airport in Wichita when he drove there to pick up a person he believed was buying a Wichita massage parlor that was a front for prostitution. In fact, the person Tee had talked with several times on the phone was one of two undercover informants working with federal investigators. In recorded conversations, Tee identified the extent of sexual services various parlors were performing and explained how he had helped other individuals establish parlors in Wichita.
Tee tried to collect fees from both undercover informants – one posing as a buyer and the other as a seller – in return for helping to arrange the sale. He also offered to provide additional services in exchange for additional compensation, including advertising on Backpage.com, filing city paperwork and doing taxes for the massage parlor. Examples of Tee’s advertisements on Backpage.com were presented at trial.
Beall commended the Wichita Police Department, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Wanblee Man Indicted for MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for First Degree Murder and Assault with a Dangerous Weapon.
Leon “Gogg” Between Lodges, a/k/a Leon Milk, age 32, was indicted on June 21, 2016. Between Lodges appeared before U.S. Magistrate Judge Daneta Wollmann on July 1, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Between Lodges using a knife to stab two male individuals on May 27, 2016, at Wanblee. One of these individuals died from his injuries.
The charges are merely accusations and Between Lodges is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Between Lodges was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Virginia Man Sentenced to 102 Months in Prison for Attempting to Travel to Syria to Join ISILRead the Press Release
Joseph Hassan Farrokh, 29, of Woodbridge, Virginia, was sentenced today to 102 months in prison for attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement
“With this sentence, Joseph Hassan Farrokh will be held accountable for attempting to travel overseas to join ISIL and to provide material support to the designated terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”
“Farrokh’s state of mind and conduct in this case were egregious and go to the heart of the safety of our community and the nation,” said U.S. Attorney Boente. “This office will continue to pursue those that travel to fight against the United States and our allies, as well as those individuals that recruit others on behalf of ISIL in the homeland.”
“Joseph Farrokh admitted to attempting to travel to Syria to join and fight with ISIL in support of its oppressive, violent and criminal agenda,” said Assistant Director in Charge Abbate. “Thanks to the relentless work of agents, analysts and prosecutors, together with the essential contributions of our partners in the Joint Terrorism Task Force, we were able to disrupt those plans and bring him to justice. The FBI’s highest priority remains preventing terrorist attacks and combating terrorism here in the U.S. and around world.”
U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia imposed today’s sentence and also ordered Farrokh to serve 10 years of supervised release.
According to the statement of facts filed with the plea agreement, Farrokh conspired with Mahmoud Amin Elhassan, 25, also of Woodbridge, to travel from the United States to Syria in order to fight with ISIL. As part of their plan, Farrokh would travel first, followed by Elhassan at a later date. Farrokh and Elhassan spoke in detail about their potential travel, including discussing the different routes each would take to travel to Syria. Farrokh also provided $600 to Elhassan to aid in Elhassan’s future travel to Syria. Both men spoke openly with each other about supporting ISIL and supporting violent jihad and on Oct. 2, 2015, Farrokh stated that he had no patience and wanted to go right away and “chop their heads.”
According to the statement of facts, in an effort to conceal their plans to support ISIL, Farrokh and Elhassan communicated using apps they believed were safe from law enforcement detection. In the summer of 2015, Farrokh and Elhassan talked more seriously about going to join ISIL and concluded that they needed someone to help them do so. Elhassan contacted like-minded people all over the world and the men pursued two separate plans to travel to Syria to join ISIL, but neither plan worked out.
According to the statement of facts, Farrokh and Elhassan conspired with other persons they believed would help facilitate their travel to Syria. Over the course of many meetings, the men discussed in detail their travel plans and efforts to avoid law enforcement detection, including Farrokh shaving his beard and flying out of Richmond International Airport, where they believed there would be less security. Farrokh and Elhassan agreed that Farrokh should tell his family that he intended to travel to Saudi Arabia to study.
According to the statement of facts, on Jan. 15, 2016, Elhassan picked up Farrokh at his home in Woodbridge and drove him to a location approximately one mile from the Richmond airport. Farrokh then took a cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate.
The FBI’s Joint Terrorism Task Force investigated the case. Assistant U.S. Attorneys Gordon D. Kromberg and Dennis M. Fitzpatrick of the Eastern District of Virginia are prosecuting the case with Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
United States Reaches Settlements with Three Puerto Rico Entities for Falsely Certifying Small Business Entity StatusRead the Press Release
Baltimore, Maryland – Constructora Santiago II, Corp., Centro Cardiovascular and Hospital Del Maestro have agreed to pay $132,000, collectively, to the United States to resolve allegations that each falsely certified to the Nuclear Regulatory Commission (“NRC”) that it was a small business entity in order to pay reduced nuclear material handling fees.
The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein and Joseph A. McMillan, Assistant Inspector General for Investigations, NRC, Office of Inspector General.
“Companies that falsely certify they are small businesses in order to obtain government benefits must be held accountable,” said U.S. Attorney for the District of Maryland Rod J. Rosenstein.
“The NRC OIG is committed to identifying anyone that will defraud the Commission regardless of their location. The NRC OIG is thankful to the US Attorney’s Office, Baltimore, MD, for their outstanding support in these investigations,” said Assistant Inspector General for Investigations Joseph A. McMillan.
In order to possess and handle radioactive materials, an entity has to obtain a license from the NRC and pay an annual fee. The NRC permits companies to pay a reduced fee if it qualifies as a small business. In order to certify small business status, a business must “average gross receipts of $7 million or less over its last three completed fiscal years.” Each small business entity is required to complete a form certifying that it meets the criteria to qualify as a small business entity.
According to the settlement agreements, Constructora Santiago II, Corp., Centro Cardiovascular and Hospital Del Maestro falsely certified that each had gross receipts of less than $7 million when the government contends that in fact, all three companies had gross receipts that greatly exceeded $7 million. As a result of their false claims, each of the three entities paid reduced NRC license fees. Each entity has denied the allegations.
U.S. Attorney Rod J. Rosenstein commended the NRC Office of Inspector General, Washington field office for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the case.
U.S. Attorney Vance: Where Do We Go from Here?Read the Press Release
These past few weeks have been difficult for our country. The deaths in Baton Rouge, Minnesota and Dallas are nothing short of tragic, and they raise fundamental questions about who we are as a society. We must have trust between communities and law enforcement if we are to be a safe society. How can this trust be rebuilt? How can every person in this country be guaranteed equal justice under the law?
As a part of the Department of Justice, the U.S. Attorney’s Office for the Northern District of Alabama plays a key role in answering these questions. Our mission is contained within our very name: our responsibility is to work to ensure equal justice for all Americans. Because of this core value, we support law enforcement in its commitment to keep all of us safe. We also seek to ensure that all Americans’ civil rights are protected. Recently, some have questioned whether those who support black lives can also support blue lives. In our view, the answer is a resounding yes.
The killings of the five police officers in Dallas — Lorne Ahrens, Michael Krol, Michael Smith, Brent Thompson, and Patrick Zamarriga, and now three in Baton Rouge -- Montrell Jackson, Brad Garafola and Matthew Gerald — were unconscionable. In order for us to move forward in a meaningful way, we must respect law enforcement and acknowledge that they risk their lives to protect public safety. The police officers in Baton Rouge were ambushed; those in Dallas died protecting a public protest that originated from the deaths of Alton Sterling and Philando Castile. The commitment of law enforcement is essential to a safe, just society.
Bad actors, as we are all too frequently reminded, live in many different communities. They do not, however, define those communities — whether police departments or minority groups. So how do we move forward and rebuild trust between the police and the communities they protect? For us, one way is to help the community understand the Justice Department’s role in enforcing this nation’s civil rights laws. Although we work with law enforcement every day and overwhelmingly see officers and agents who are committed to doing what is right, we will not sit idly by if police use excessive force. We have, and will continue, to prosecute officers who violate our citizens’ civil rights, as we did, successfully, just this past week.
At the same time, we are committed to the success of Birmingham’s work as a pilot city in the Justice Department’s Initiative for Building Community Trust and Justice. Efforts have been underway since the fall of 2015 to strengthen the relationship between law enforcement and the communities they serve and protect. As part of this program, the Justice Department, community stakeholders, academics, and civil rights advocates are developing a plan that will enhance procedural justice, reduce bias, and support reconciliation in local communities. I welcome your feedback in this program; it is essential.
Martin Luther King, Jr. said, “The arc of the moral universe is long, but it bends towards justice.” Although we have work to do, the obstacles to justice are not insurmountable. This is not the time for hate or indifference. This is the time for us to set aside differences and old misunderstandings and come together to promote good law enforcement, a safe community, and an understanding that our civil rights are precious. It is our obligation to protect them, and it is going to take all of us to do this work.
Two “Pill Mill” Operators Sentenced to Federal Prison in Scheme to Distribute Oxycodone Without a Medical NeedRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Michael Resnick, a/k/a Michael Reznikov, age 54, today to three years in federal prison followed by three years of supervised release for conspiring to distribute oxycodone and alprazolam, and for structuring currency deposits. Chief Judge Blake sentenced Resnick’s wife, Alina Margulis age 49, both from Brooklyn, New York, to a year and a day in prison followed by three years of supervised release for the drug conspiracy and for money laundering. Chief Judge Blake also entered an order that Resnick and Margulis forfeit $280,000, the amount of illicit profits they received from the scheme.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
“State and federal authorities are working to shut down ‘pain clinics’ that are really just fronts for criminals who divert pharmaceutical drugs,” said U.S. Attorney Rod J. Rosenstein. “Michael Resnick and his wife Alina Margulis operated a clinic in which they hired physicians to prescribe opioid drugs to people who had no medical need for the drugs. Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper oversight.”
“Those who facilitate the illegal use of controlled substances negatively impact our entire community,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today they are being held accountable and will not financially benefit from their illegal activity.”
According to their plea agreements and court documents, in late 2010 and early 2011, Resnick and Margulis traveled to Florida to learn how to operate a pain clinic under the direction of co-defendant Gerald Wiseberg, who owned and operated Total Care Medical Center in Deerfield Beach, Florida. Wiseberg told Resnick that operating a pain clinic would be a lucrative business and that no medical experience was required.
By early 2011, Resnick, Margulis and Wiseberg agreed to open a similar pain management clinic in Maryland. In March 2011, the defendants opened Healthy Life in
Owings Mills. Healthy Life later moved to larger space in Timonium, Maryland, until it was closed on May 15, 2012. Both Healthy Life locations attracted large and unruly crowds. Customers caused disturbances outside the locations, using narcotics and engaging in narcotics transactions. Over 80% of the customers who received a prescription from Healthy Life were from out of state, and approximately 97% of the customers received at least one prescription for oxycodone.
Wiseberg hired physician William Crittenden to serve as one of the first medical directors at Healthy Life because Wiseberg believed that Crittenden would write prescriptions for narcotics to customers without a legitimate medical need. Crittenden resigned as the medical director in August 2011 when the Maryland Board of Physicians—the agency authorized to issue licenses to practice medicine in Maryland and to discipline licensees—initiated an investigation into Crittenden’s prescribing practices. This investigation ultimately led to revocation of Crittenden’s medical license.
In September 2011, Resnick, Margulis and Wiseberg hired another medical director, Daniel Alexander, because they believed that Alexander would likewise write drug prescriptions to customers without a legitimate medical need. Margulis told Alexander that Healthy Life only prescribed pills and did not offer any alternative therapies.
To increase profits, Alexander spent a limited amount of time with each patient in order to see a very large number of patients each day. From September 2011 to March 2012, Alexander issued prescriptions to 627 patients on 946 separate office visits. Of those 946 visits, the customer received a prescription for oxycodone 97% of the time, and a prescription for alprazolam 23% of the time, despite Alexander’s knowledge that many of the customers did not have a legitimate medical need for the drugs.
Following the business model of Total Care, Resnick, Margulis and Wiseberg, who were not doctors, established the standard operating procedures for Healthy Life, including which drugs the prescribing physician could prescribe and the maximum dosage amounts of these drugs. Healthy Life also accepted cash payments in exchange for providing prescriptions for large amounts of oxycodone, alprazolam and other drugs, to customers without a legitimate medical need for the drugs.
Also to maximize profits, they also encouraged the prescribing physicians to prescribe the maximum amount of oxycodone to each customer. Margulis and Resnick handled complaints by Healthy Life customers who were unhappy with the prescriptions they received, particularly when a medical provider might prescribe less oxycodone than the customer wanted. In those instances, Margulis and Resnick would ask the prescribing medical provider to reconsider, knowing it would lead the provider to give the customer what the customer wanted.
Margulis and Resnick received 28% of the net profits from Healthy Life, obtaining a total of $280,000. Wiseberg received 30% of the net profits. Margulis kept the accounting books for the business. From June 2011 to April 2012, Margulis wrote monthly checks of $12,000 to an entity Wiseberg controlled. Additionally, Resnick and Margulis paid Wiseberg $165,000 in cash in 2011 for Wiseberg’s 30% share.
In order to evade currency transaction reporting requirements, Resnick and others at his direction deposited cash accumulated from customers in amounts less than $10,000 into several bank accounts for Healthy Life. Resnick admitted that he engaged in a pattern of illegal structuring involving more than $100,000 in a 12-month period.
Gerald Wiseberg, a/k/a Gerry Wiseberg and Jerry Wiseberg, age 82, of Boca Raton, Florida pleaded guilty on October 15, 2015 to his participation in the conspiracy and was sentenced on June 7, 2016 to three years in prison. Chief Judge Blake also entered an order that Wiseberg forfeit $273,000.
A federal jury convicted William Crittenden III, age 52, of Kensington, Maryland on February 19, 2016 of conspiring to distribute oxycodone and alprazolam, and eight separate counts of unlawfully distributing oxycodone. Crittenden was acquitted on 15 of the drug distribution counts. Crittenden awaits sentencing.
Daniel Alexander, age 53, of Pikesville, Maryland, pleaded guilty on October 27, 2015 to his participation in the conspiracy. On July 6, 2016, Alexander filed a motion to vacate his guilty plea. The motion is pending.
United States Attorney Rod J. Rosenstein commended DEA, IRS-CI, Baltimore County Police Department and Baltimore County State’s Attorneys’ Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Plead Guilty to Student Loan Fraud Scheme Targeting NVCCRead the Press Release
ALEXANDRIA, Va. – Ernest Xavier Taylor, Jr., 31, and Tracie Laverne Mixon, 34, both of Hammond, Louisiana, have pleaded guilty to charges relating to unlawfully using the identities of four people to fraudulently obtain federal student loans from Northern Virginia Community College (NVCC) and other schools.
According to the statement of facts filed with the plea agreement, Taylor Jr. and Mixon engaged in a conspiracy to use the identity of four different people to fraudulently obtain federal student aid from NVCC and other schools. The four different people included three who were in prison at the time their identities were used, and the fourth person was recovering in a military hospital after suffering injuries while deployed as a member of the U.S. Army in Afghanistan.
Taylor Jr. and Mixon would use the names, dates of birth, and social security numbers of these four different people on various submissions, but Taylor Jr. and Mixon would supply their own addresses, emails, and telephone numbers to ensure that communications from the Department of Education, NVCC, and the other schools would be directed to them. For example, recorded telephone calls captured Taylor Jr. pretending to be the four different identities when calling to check on the status of financial aid from NVCC.
Taylor Jr. and Mixon’s fraudulent actions allegedly caused NVCC and other schools to offer approximately $67,000 in federal student aid to the various identities used by Taylor Jr. and Mixon. In addition to NVCC, the other schools targeted by Taylor Jr. and Mixon are: Front Range Community College; Community College of Denver; Portland Community College; and Black Hills State University.
Taylor Jr. and Mixon each face a mandatory minimum of two years in prison for the aggravated identity theft when sentenced on October 7. Additionally, Taylor Jr. and Mixon face a maximum penalty of five years in prison for the conspiracy charged in the case. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kathleen Tighe, Inspector General for the U.S. Department of Education, Office of Inspector General; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorneys Brian D. Harrison and Edward P. Sullivan are prosecuting the case.
The case is being investigated by the Department of Education, Office of Inspector General and the FBI. The investigation received assistance from the Northern Virginia Community College Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-118.
Two Members of Methamphetamine Conspiracy that Trafficked Drugs from Arizona to Roanoke Sentenced in Federal CourtRead the Press Release
ROANOKE, VIRGINIA – A pair of conspirators who were part of a group that trafficked methamphetamine from Arizona to Roanoke before distributing it throughout the region were sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced today.
Jose Manuel Morales-Hernandez, 34, of Roanoke, Va., previously pled guilty to one count of conspiracy to distribute more than 500 grams of methamphetamine. Today in District Court he was sentenced to 95 months in federal prison. Joshua Benjamin Sutphin, 33, of Roanoke, Va., previously pled guilty to one count of conspiracy to distribute 500 grams or more of methamphetamine. Today in District Court he was sentenced to 120 months in federal prison.
“Methamphetamine continues to be something law enforcement in Southwest Virginia battles on a daily basis,” United States Attorney Fishwick said today. “We will continue to prosecute those who traffic and distribute this highly addictive and dangerous substance.”
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, Morales-Hernandez was a higher-level supplier of methamphetamine for a conspiracy that brought multi-pound quantities of the drug from Arizona to Roanoke. Sutphin was supplied with methamphetamine from other members of the conspiracy and, in turn, supplied other members of the conspiracy who resold the drug in user-level quantities within the confines of Southeast Roanoke City.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Virginia State Police. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Two Convicted in Romance Scam ConspiracyRead the Press Release
HOUSTON – Two individuals have been convicted for their role in a $2 million romance scam conspiracy, announced U.S. Attorney Kenneth Magidson. Kunle Mutiu Amoo, 48, and Lanre Sunday Adeoba, 61, both Nigerian citizens who resided outside the Houston area, each pleaded guilty today to one count of conspiring to commit wire fraud.
The romance scam involved a scheme to defraud victims of money using false romantic overtures and false promises that the victims would be repaid. In this conspiracy, a member of the conspiracy posed as the manager of a construction company doing business in South Africa who needed the victim’s financial assistance to move $42 million in construction project proceeds from South Africa to the United States. The defendants posed as South African diplomats who were responsible for transporting the money into the United States and who also needed the victim’s financial assistance in order to transport the money.
As part of their pleas today, Amoo and Adeoba admitted they agreed and attempted to defraud this victim of $511,000.
The overall conspiracy caused the victim a loss of $2 million.
According to the FBI, romance scams, also classified as confidence frauds, result in the highest amount of financial losses when compared to other internet-enabled crimes. In 2015 victims of confidence frauds reported financial losses of nearly 200 million dollars to the FBI's Internet Crime Complaint Center, or IC3 website. If you think you've been victimized by a dating or other online scam, report it to www.ic3.gov.
U.S. District Judge Alfred H. Bennett accepted the guilty pleas and set sentencing for Sept. 22, 2016. At that time, each faces up to 20 years in federal prison and a possible $250,000 fine. They both will remain in custody pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Troy Man Sentenced for Possessing Child PornographyRead the Press Release
CONCORD, NEW HAMPSHIRE - John P. Howe, Jr., 34, of Troy, New Hampshire, was sentenced on Friday in the United States District Court for the District of New Hampshire for possessing child pornography, announced United States Attorney Emily Gray Rice. The Court imposed a sentence of 78 months’ imprisonment, to be followed by 10 years of supervised release.
In 2014, the Federal Bureau of Investigation obtained information indicating that websites devoted to the exploitation of children had been accessed by a computer at the defendant’s Troy, New Hampshire residence. When a federal search warrant for that residence was executed in September 2014, authorities located a collection of videos and still images of child pornography on one of the defendant’s personal electronic devices, including a number of images depicting sadistic and masochistic acts.
The case was investigated by the Federal Bureau of Investigation, in conjunction with Homeland Security Investigations, the New Hampshire State Police, the New Hampshire Internet Crimes Against Children Task Force (NH ICAC), and the Troy, New Hampshire Police Department.
This case was prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Three from Northeast Ohio plead guilty for their roles in $17 million investment fraudRead the Press Release
Three men from Northeast Ohio pleaded guilty this week for their roles in a conspiracy to defraud about 70 investors out of approximately $17 million, law enforcement officials said.
Thomas Abdallah, 52, of Brunswick, pleaded guilty this week to plead to one count of conspiracy to commit wire fraud and securities fraud and one count of money laundering.
Mark M. George, 59, of Independence pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud.
Jeffrey L. Gainer, 52, of Akron, pleaded guilty to one count of sale of unregistered securities.
All three are scheduled to be sentenced Oct. 4
The guilty pleas was announced by Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigations, Cincinnati Field Office.
Kenneth A. Grant, Jerry A. Cicolani and Kelly C. Hood previously pleaded guilty to crimes related to this fraud.
Abdallah and Grant owned and operated KGTA Petroleum, Ltd. They and others marketed KGTA as a company that earned profits from buying and selling crude oil and refined fuel products. They represented to investors that they had relationships with third-party purchasers and investor funds would be used to purchase fuel products at a discount and then resold at substantial profit, according to court documents.
KGTA issued investment agreements and promissory notes which offered guaranteed monthly payments up to five percent per month or annual payments of approximately 60 percent per year, according to the information. The defendants never filed documentation about KGTA with the Securities and Exchange Commission, according to court documents.
Together, they obtained approximately $31 million from about 70 investors between 2010 and 2014 through false and fraudulent pretenses. They knew KGTA did not have agreements in place to sell oil and fuel, and that investors would not earn 5 percent per month on their investments, according to court documents.
The defendants used investor money for personal expenditures and luxury items including a Mercedes Benz, a boat and mortgage payments on high-end residential property. As a result of the conspiracy, the defendants defrauded the investors out of approximately $17 million, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump and Mark S. Bennett following an investigation by the Federal Bureau of Investigation and Internal Revenue Service—Criminal Investigations.